Revenue and Margin Analysis: Explaining Variances by Computing the Impact of Price, Volume, and Mix
The comparison of actual revenue or margin amounts to either budget or prior year results will generally result in a variance. This course demonstrates mathematical formulas to compute the amount of that variance that is attributable to pricing decisions, unit volume and product mix. In the case of margin variances, the calculation for product cost is an additional component. This method is an important tool to clearly and concisely explain revenue and margin variances to marketing, operations and executive personnel. Specific topics covered are the calculation of the price, volume, mix and cost components as well as an explanation of the concept of product mix. Applicable to CPA’s working in the manufacturing or distribution industry as well as CPA’s in public accounting who serve these industries.
Format: Online pdf (28 pages).
Advance Preparation: None
CPE Credit: 1 hr.
Field of Study: Accounting
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: February 2017