Course Description:
The comparison of actual revenue or margin amounts to either budget or prior year results will generally result in a variance.This course demonstrates mathematical formulas to compute the amount of that variance that is attributable to pricing decisions, unit volume and product mix.In the case of margin variances, the calculation for product cost is an additional component.This method is an important tool to clearly and concisely explain revenue and margin variances to marketing, operations and executive personnel.Specific topics covered are the calculation of the price, volume, mix and cost components as well as an explanation of the concept of product mix. Applicable to CPA’s working in the manufacturing or distribution industry as well as CPA’s in public accounting who serve these industries.

Learning Objectives:
Upon completion of this course, you should be able to:
-Identify appropriate explanations for revenue and margin variances
-Define and compute the price variance component at the revenue and margin levels
-Define and compute the volume variance component at the revenue and margin levels
-Define and compute the product mix variance component at the revenue and margin levels
-Define and compute the product cost variance component at the margin level

Prerequisites: None
Level: Overview
NASBA Category: Accounting
Recommended CPE: 2Hours

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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