Sales variance analysis is used by managers for:
A) Budgeting purposes only.
B) Planning and control purposes.
C) Planning and budgeting purposes.
D) Planning purposes only.
E) Control purposes only.

Question

Quizplus · Accepted Answer

Sales variance analysis helps managers in both planning and control purposes. It helps in planning by identifying the factors that affect sales, such as changes in the market, customer preferences, or competition. It also helps in control by comparing actual sales with the planned or budgeted sales and identifying the reasons for any deviations. This helps managers take corrective actions and improve future sales performance.

Sales Variance Analysis Is Used by Managers For