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 variance that is attributable to pricing decisions, unit volume, and product mix. 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. This course is a valuable resource for CPAs working in the manufacturing or distribution industry, as well as for CPAs in public accounting who serve these industries.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the characteristics, components, usage, and terminology associated with revenue and margin analysis
Compute the price variance component and the volume variance component at the revenue and margin levels
Compute the product mix variance component and the product cost variance component at the revenue and margin levels
Major Topics
Revenue Analysis
Margin Analysis
The Price Component
The Volume Component
The Mix Component
The Cost Component
