November 2008
Beginner
448 pages
11h 33m
English
Content preview from Budgeting Basics and Beyond
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8.3. Planning Variance
The planning variance arises when expected industry or other environmental factors do not materialize. For example, at the beginning of the period, the sales projection may be based on reviewing supply and demand. However, because of actual conditions in the industry, the actual sales may be much less. This sales unit variance may then be deemed a planning error and not a performance problem. Industry sales typically are considered beyond manager control.
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