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Sales Planning and Operational Variance

Forums › ACCA Forums › ACCA PM Performance Management Forums › Sales Planning and Operational Variance

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by mrjonbain.
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    Posts
  • October 5, 2023 at 7:45 am #692845
    khorasiaasif@gmail.com
    Participant
    • Topics: 10
    • Replies: 8
    • ☆

    Dear Sir,

    I came across one question in BPP learning material on Planning and operational variance analysis (Activity 3) . The question says as below

    Budget production and sales – 5000 units
    Actual production and sales – 5200 and 5100 respectively
    You discovered that industry sales of Chils were 10% lower than forecast

    Required to analyze whether there was a favourable or Adverse Sales Volume planning and operational variance.

    In answer, they have calculated revised sales volume as 4500 units. My question is

    How have they derived this 4500 quantity as in above it says that sales were 10% lower than forecast!!

    Please help me understand the above

    Regards

    Aasif

    October 5, 2023 at 11:14 am #692853
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2421
    • ☆☆☆☆☆

    This forum is primarily designed for students to help one another. If you want to ask the tutor something directly, please please use the ask the tutor forum-

    https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-pm-exams/

    Hope this helps.

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