Turn a Variance Into a Bridge
Build a simple volume-price-mix bridge for a revenue variance.
Plan was 10,000 units at $50; actual was 9,000 units at $52 with weaker premium mix. Standard costing and variance analysis The common trap is documenting activity without proving the control objective or root cause. Volume 1,000 fewer units x planned $50 = $50,000 unfavorable. Hold price constant to isolate demand or capacity. Price $2 higher actual price x 9,000 actual units = $18,000 favorable. Price helped; it did not cause the miss. Mix Premium share fell, reducing weighted average economics. Mix explains why total performance still missed. Before A vague review note, broad explanation, or reminder that cannot be…
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