Basic Variance Analysis part 5 – Interpretation of variances – ACCA Performance Management (PM)
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SENSIE JOHN:
I THOUGHT OF MAY BE THE SUPPLIER WE BUY FROM GOT IN SHORTAGE OF MATS LED US TO BUY FROM A EXPENSIVE SUPPLIER
IS IT RIGHT
It could be a reason
Thanks for being very thorough.
Hi John,
I have been watching through all of the PM lectures so far and cannot thank you enough! Your lectures are excellent and just as I think I have a question you answer it in the same lecture.
Thanks again!
Dan
Dear John,
Thank you so much for your informative lecture.
You are welcome 馃檪
Hi John,
On your point about deliberately buying higher priced materials to increase selling price or sales volume, can I check why it is that Sales Volume variances are based on contribution/profit per unit instead of selling price per unit?
Because although selling more means there is more revenue, it also means there are more costs of the goods. Therefore selling more units means more contribution.
Thank you for everything John
You are welcome 馃檪
Thank you John