More variance analysis Example 1

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May 13, 2012 at 5:41 am #52639
kajutka26
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Hello, I have a question about Sales volume variance
Can you explain why we subtract 90% of budgeted sale from actual units sold ?

Thanks in advance
May 14, 2012 at 5:54 pm #97505
John Moffat
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Because the question says that sales worldwide are down 10%. So that fall is a planning variance – and further change is an operational variance.
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