Hi sir,
I just wonder the reason why " Sales mix and quantity variances are inappropriate for control for control report purposes when different managers have responsibility for sales of different products."Thanks in advance.
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Advanced variance
10y ago#1The main reason for looking at variances is to measure the performance of the manager responsible.
If one manager is responsible for the sales of all the products, then (for example) the mix variance is useful because it would be that managers decision to increase sales of one at the expense of the other.
If there are different managers responsible then each should be measured separately only on sales of their product.
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