Question:
Direct Labor rate variance, Direct labor efficiency variance, Total Direct Labor Variance
Variable Overhead Spending Variance, Variable Overhead efficiency variance ,Total variable Overhead Variance
Fixed Overhead Budget variance, Fixed Overhead volume Variance
Sales Volume Variance, Sales Price Variance, AActual-static Budget Variance
Market share Variance, Market Size variance, sales Quantity variance for CM
Sales-Mix variance, sales-quantity variance, sales volume variance
Q1. given the above variances, what connection might they have to each other? Could the actions of the purchasing agent impact production? could production issues impact sales? Use some logic based cause and effect tool to determine the linkages between the variances.
Q2. Why is it critical to identify linkages between the variances?