Revenue and Profit Variance Analysis Homework Help
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What is Revenue Variance?
In an accounting period, a revenue variance depicts the difference between the planned or budgeted revenue and the actually achieved revenue. When the actual revenue exceeds the budgeted revenue the final conclusion is favorable to the business. The main reasons behind such difference can be the budgeted and actual selling prices, volumes of sales of the product etc. in this article for Revenue and Profit Variance Analysis homework help we discuss the importance and reasons of such variances.
How does the Revenue Variance Affect the Profit?
In this article for Revenue and Profit Variance Analysis homework help, the profit variance is related to the revenue variance and hence occurs due to it. The company’s revenue variance can affect the cash flow when the favorable revenue meets the high expense in demand.
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What is Profit Variance?
There is a budgeted profit level already on paper before the actual calculation of revenue. It that goes beyond the actual collected profit then it is called as a profit variance. It can be either ways. Usually in this article for Revenue and Profit Variance Analysis homework help, four types of profit variances are shown.
• Gross profit variance
• Contribution margin variance
• Operating profit variance
• Net profit variance
Reasons for profit Variances
The Revenue and Profit Variance Analysis homework help writers present the reasons below as
• Actual and expected product pricing differences
• Actual and expected unit sales differences
• Over head costs differences
• Labor cost changes
• Material cost changes etc.
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