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Bedco 12/13-planning and operational vairnaces

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Bedco 12/13-planning and operational vairnaces

  • This topic has 6 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • February 28, 2021 at 12:50 pm #612116
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    Hi Dear Tutor, the world commodit price increased by 20% which is the uncontrollable factor

    Also the hotel chain made an unexpected request for an immediate design to change pillowcases so the new design required 10% more-here is if the hotel decided on changing the design do we consider it operational variance?if the hotel changes the design it is operational varience because there is not mentioned such as its design is changed to meet the world’s cotton deisgn criteria. did i understood correctly?

    February 28, 2021 at 1:43 pm #612123
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    I found it this is because as the production falls customers refuse buying it therefore it is uncontrollable factor.

    February 28, 2021 at 3:10 pm #612140
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    The extra 10% cotton is a planning variance. They had to change their plans (their design) at the start of the month.

    It is only if they actually use more or less than the new standard usage that there is an operational variance, because that would mean something has gone wrong with their operations.

    February 28, 2021 at 4:46 pm #612157
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    it is something change in the customer requirement.thank you dear tutor

    March 1, 2021 at 7:55 am #612234
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    Yes – it was a change in the requirement which is why they had to change their plans.

    March 1, 2021 at 9:48 am #612282
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    thank you very much dear

    March 1, 2021 at 2:40 pm #612349
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 7 posts - 1 through 7 (of 7 total)
  • The topic ‘Bedco 12/13-planning and operational vairnaces’ is closed to new replies.

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