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” revised standard are needed to take account of operational factor”
1. Could you explain what does operational factors mean in this context?
2. Could you also explain what this statement is not correct about planning and operational variances?Standards are revised to take into account changes in plans (and the differences from the original standards are the planning variances). That has nothing to do with the operational variances.
Operational factors are in all variance contexts the reasons why in actual operations, the actual result might be different from the revised standards.
Therefore operational factors are factors that explains the reasons why the manager’s performance has been good or bad( the factors that explain the performance could actually be controlled by the manager)
Is that correct?
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