Analysis

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Guest

Guest (Querist)

19 September 2012 Hi expert,
What is Sales, variance & Margin analysis?
How is it done in a company??

thanks

Amol S Joglekar

Amol S Joglekar (Expert)
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19 September 2012 Variance is calculated with respect to BUDGETED/PLANNED versus ACTUAL. In case of sales variance, the total variance is further analysed into quantity and price variance. The margin analysis, in ACCOUNTING context, refers to analysis of net profit.

Guest

Guest (Querist)

19 September 2012 Thanks Amol.
Could you some reasons for Profit variance.

Amol S Joglekar

Amol S Joglekar (Expert)
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20 September 2012 The profit variance is calculated with respect to the BUDGETED/PLANNED profit versus actual profit. The TOTAL variance is further bifurcated in the same way as that of SALES. (In the absence of quantity records, only the total profit variance is computed)

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