2. Feedback control and variance analysis From Atrill & McLaney, Management Accounting for Decision Makers (2007), Pearson Prepare budget Collect information on actual performance Perform Compare actual performance with budget and take action on deviations Feedback Feedback Feedback
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5. Sales variance (1) Q = (Q A - Q B ) P B P = (P A - P B ) Q A Adverse Favourable Unit price Volume Budgeted Actual Price variance Volume variance Actual Budgeted Total variance = P A Q A -P B Q B Volume variance Price variance