Sales variance

Chapter 14 Operational Performance Measurement: Sales and Direct-Cost Variances, and the Role of Nonfinancial Performance Measures Case 14-1: Pet Groom and Clean Company Readings 14-1: “Standard Costing Is Alive and Well at Parker Brass” by D. Johnsen and P. Sopariwala, Management Accounting Quarterly (Winter 2000), pp. 12-20. The Brass Products Division of the Parker Hannifin Corporation is a world-class manufacturer of tube and brass fittings, valves, hose, and hose fittings

INTRODUCTION After analyzing past customer preferences, in 2010 store 88 initiated a promotion to increase mid-week sales to even out demand. In the past approximately 80% of services were incurred on Friday, Saturday and Monday, compared to 20% incurred on Tuesday, Wednesday and Thursday. To even out the demand for services, the store initiated a program to decrease the service price to $18 on Tuesdays, Wednesdays, and Thursdays and increase the price to $30 on Fridays, Saturdays, and Mondays

14. Sales volume variances can have significant implications for strategic management. It may indicate that the market: A) may be smaller than originally planned. B) mix is different than initial estimates. C) is stronger than previously thought. D) needs

which costs cannot be controlled. The variance analysis simply showed that there was an unfavorable variance for manufacturing (99,000 U). Manufacturing Cost of Goods Sold must be evaluated individually because of the underlying facets from just a number. This unfavorable number could be caused by either an increase in price or a waste in using the number of unit materials. The materials variance should be broken down into the price variance and the usage variance. Exhibit 1 shows that variable cost

Katy EH Manufacturing Company | ASSIGNMENT | Evaluation of Business Plans, Budgeting and Variance Analysis | | Algernon Jones | 05-Dec-15 | Katy EH Manufacturing Company INTODUCTION: This study was conducted to evaluate various business plans of Katy EH Manufacturing Company and their impact on profit before tax, preparation of budget as per selected option and investigation of variances of operating budget of year 2016. Answer Part (a): To decide whether product line Grill A

1. (TCO 7) At Lakeside Manufacturing, budgets are the responsibility of everyone. Each department collaborates in determining its expected needs, and sales personnel determine the likely sales volume. Al Talbott, one of the production managers, believes in building plenty of slack into everything, including his estimates of ending inventory of work in process.  As the accounting manager, write a memo to Mr. Talbott, explaining why the ending inventory figure should be extremely accurate, with as

BUDGETARY CONTROL AND VARIANCE ANALYSIS WHY COMPARE ACTUAL AND BUDGET? One of the objectives of budgeting is to provide a base against which actual performance can be measured. This is only worth doing if action will be taken as a result. In too many organizations the production of results compared to budget is seen as the end of the process. If no action is taken on the basis of management accounts then there is little point in producing them and even less point in wasting management time discussing

distribution and sales organization. The central office took care of accounting, developing

of these factors? - In order to find out the factors that caused the less actual quarterly income, we did analysis on variances. Sales variance, production cost variances and overhead variances are calculated as follows: - Sales Variance Actual Price($) Budgeted Price($) Actual Quantity Sold(Unit) Budgeted Quantity Sold(Unit) Price Variance ($) F/U Quantity Variance ($) F/U Round 22 25 1100 1000 (3300) U 2500 F Square 35 34 3900 4000 3900 F (3400) U Oval 42 45 2250 3000 (6750) U

Q1. Variance analysis for 2003, 2004 is in excel file. In 2003 the actual sales revenue is less than the budgeted sales revenue by 3%. The reason for this is falling sales volume and not falling selling price. This is because quantity variance component of sales revenue flexible budget is higher than price variance component of sales revenue flexible budget. Moreover, cost of production variance is almost 7%. This is attributed to high variances of leather costs, finishing cost and manufacturing