Presentation is loading. Please wait.

Presentation is loading. Please wait.

Profit Variance Analysis. Variance Analysis Cost Variance Analysis: - Direct Materials : - Direct Materials : - - Mix Variance - - Yield Variance - Direct.

Similar presentations


Presentation on theme: "Profit Variance Analysis. Variance Analysis Cost Variance Analysis: - Direct Materials : - Direct Materials : - - Mix Variance - - Yield Variance - Direct."— Presentation transcript:

1 Profit Variance Analysis

2 Variance Analysis Cost Variance Analysis: - Direct Materials : - Direct Materials : - - Mix Variance - - Yield Variance - Direct Labor: - Direct Labor: - - Mix Variance - - Yield Variance - Variable Overhead - Variable Overhead - Fixed Overhead - Fixed Overhead

3 Variance Analysis Sale Variance Analysis: - - Static-budget variance - - Flexible-budget variance - - Sales-volume variance - - Sales-quantity variance - - Sales-mix variance

4 9-4 Cost Variance Analysis Price and Quantity Variances: Direct Materials PV = (AP – SP)AQQV = (AQ– SQ)SP AQ x AP AQ x SPSQ x SP Price Variance Quantity Variance Total Variance

5 9-5 Cost Variance Analysis Rate and Efficiency Variances: Direct Labor RV = (AR – SR)AHEV = (AH– SH)SR AH x AR AH x SRSH x SR Rate Variance Efficiency Variance Total Variance

6 9-6 Cost Variance Analysis Direct Materials : Mix and Yield Variances MV = (AM – SM)xAQxSPYV = (AQ– SQ)xSMxSP AQxAM x SP AQ xSMx SPSQxSM x SP Mix Variance Yield Variance Quantity Variance

7 9-7 Cost Variance Analysis Direct Labor : Mix and Yield Variances MV = (AM – SM)xAHxSRYV = (AH– SH)xSMxSR AHxAM x SR AH xSMx SRSHxSM x SR Mix Variance Yield Variance Efficiency Variance

8 Sales Variances Level 1: Static-budget variance—the difference between an actual result and the static-budgeted amount Level 2: Flexible-budget variance—the difference between an actual result and the flexible-budgeted amount Level 2: Sales-volume variance Level 3: Sales-quantity variance Market Share Variance Market Size Variance Level 3: Sales-mix variance

9 9-9 P1,P2 TAQxAM x ACM P1,P2 TAQ xAMx BCM P1,P2 TBQxBMx BCM Flexible- budget Variance Sales-volume Variance Static-budget Variance Flexible-Budget and Sales-Volume Variances Illustrated P1:FBV = (ACM – BCM)xTAQxAM P2:FBV = (ACM – BCM)xTAQxAM P1:SVV = (TAQ –TBQ)x(AM- BM)xBCM P2:SVV = (TAQ –TBQ)x(AM- BM)xBCM

10 (c) 2012 Pearson Education. All rights reserved. Sales-Mix Variance Measures shifts between selling more or less of higher or lower profitable products

11 Sales-Quantity Variance

12 9-12 P1,P2 TAQ xAMx BCM P1,P2 TAQ xBMx BCM P1,P2 TBQxBMx BCM Sales-mix Variance Sales- Quantity Variance Sales-volume Variance Sales-Mix and Sales–Quantity Variances Illustrated P1:SQV = (TAQ –TBQ)xBMxBCM P2:SQV = (TAQ –TBQ)xBMxBCM P1:SMV = (AM-BM)xTAQxBCM P2:SMV = (AM-BM)xTAQxBCM

13 Sales–Quantity : Market Share and Market Size Variance WBCM = กำไรส่วนเกินถัวเฉลี่ยถ่วงน้ำหนัก ตามงบประมาณ Market Share Variance =(AMS – BMS)xTAQxWBCM Market Size Variance = (TAQ – TBQ)xBMSxWBCM

14 Sales Variances Summarized Static Budget Variance Flexible- Budget Variance Sales-Volume Variance Sales-Mix Variance Sales–Quantity Variance Market Share Variance Market Size Variance


Download ppt "Profit Variance Analysis. Variance Analysis Cost Variance Analysis: - Direct Materials : - Direct Materials : - - Mix Variance - - Yield Variance - Direct."

Similar presentations


Ads by Google