The key factors to consider when writing the variance report would be the determination of the trends in expenditure within the firm.
This report would include specific details about the extraneous expenditure items and the miscellaneous items that would have influenced the wage bill within the organization. The determination of the impact of these items would provide a logical explanation of the causative factors within the expenditure bracket. Usually, structural factors or technical flaws could cause variations in the organization’s finances (Weygandt, Kieso, & Kimmel, 2010). This would be an important step because it would clarify on some of the changes that have taken place within the organization beyond the natural factors of change as understood within the expenditure framework of the hospital.
The second consideration would be to find the specific details of the supplies that took place within the financial period under question. I would then compare these details with a set of other details of the preceding financial periods with the intention of establishing the points of variations that determined the differences between the two periods. On this score, it would be more appropriate to consider the fact that some of the issues that affected the changes in the details of expenditure have some level of connection with internal changes within the organization. On this score, it would be important to consider the impact of these changes as they relate within the two periods. ...