The syllabus for
Professional Level Performance Management indicates that “Advanced Variance Analysis” is an examinable topic for this paper. The learning guide which accompanies the syllabus gives details of what is required in this area, including (inter alia) “sales mix and quantity variances” [as well as] “sales market size and sales market share variances”.
The purpose of this
article is to present a worked example which includes sales mix/quantity and market size/share variances, in the hope that this will help candidates to master the topic and to appreciate the level of knowledge which is expected in answering a question on this topic in the Professional Level Performance Management paper.