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Sales and Sales Mix Variance
1. Introduction Variance analysis is not limited to costs—it also applies to revenues. Actual sa...
Material Mix and Yield Variance
1. Introduction In many industrial products (e.g., pharmaceuticals, food), multiple materials or...
Variable & Fixed Overhead Variance
1. Variable Overhead Variance (VOH) Concepts VOH Rate: Pre-determined during budgeting. Applied...
Variance Analysis: General Framework & Labour Cost Variance
1. Purpose of Variance Analysis Compares actual performance with budgets and standards. Helps ma...
Setting standards
1. Importance of Setting Standards Standards are critical for effective control in budgeting. T...
Variance Analysis
1. Role of Budget in Performance Monitoring Budgets are prepared as part of the planning process...
Budget Slack
1. Planning and Controlling in Budgeting Planning is the primary objective of the budgeting exe...
Preparation of Master Budget
1. Sales Forecast Month Last Year Sales (KG) Forecasted Sales (KG) Selling Price (Rs./KG) ...
Approaches to Budget Preparation
1. Imposed Budget Also known as Top-Down Budgeting Suitable for: Start-ups Small businesses Ti...
Benefits of Budgets
Budgeting is not just about forecasting numbers—it is a strategic management tool that guides pla...
Types of Budgets
📌 Why Different Types of Budgets? Organizations face different operational needs, resource constr...
Budgeting Process
What is Budgeting? Budgeting is a structured planning process developed over time. It involves ...
Strategic Planning and Budgets
What is a Vision Statement? A Vision Statement describes what the company wants to become in the...
Introduction
The Situation: A Meeting at the Company Girish (President) Praised the company’s performance — n...
Measuring Operating Risk
Why Talk About Risk? So far, we focused on maximizing contribution margin. But business also invo...
Optimal Product Mix
Ideal vs Real World Ideal World: Unlimited resources Equal contribution margins All customer o...
Discontinuing Product or Closing Down Division
Why Do Firms Close Down Products or Divisions? Due to negative contribution (sales price < varia...
Make or Buy Decision
Facing Competition Through Cost Leadership Firms achieve cost leadership by: Outsourcing non-c...
Pricing Decision
Importance of Pricing Strategy Pricing is crucial in competitive markets. Aggressive pricing bo...
BEP Analysis in Multiproduct Situation
Single-Product BEP: Fortune Pharma Example Selling Price: ₹240 per case Variable Cost: ₹200 pe...