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Variance analysis and sales analysis

BAR Chapter 4 · Area I · Blueprint I.A.3

A budget says what should happen; variance analysis explains why it didn't. The Blueprint asks you to choose the right variance for the business problem, measure the cost drivers behind it, and break sales results into price, volume and mix. Summit Snacks, a granola bar maker with a simple standard cost card, gives every variance a number you can trace.

In this chapter

1. Standards and the flexible budget
2. Direct materials variances
3. Direct labor variances
4. Variable overhead variances
5. Fixed overhead variances
6. Choosing and reading the right variance
7. Sales price, volume and mix
8. From budgeted to actual operating income

This chapter has 8 lessons, 50 practice MCQs with explanations and 15 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Choosing the right variance
• cost variances
• sales price, volume and mix

Chapter 3: Cost accounting · Chapter 5: Budgeting, forecasting and projection