logging in or signing up teall cost 3 ch16 Mahugani Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 420 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: February 24, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: viswanathan50 (29 month(s) ago) pl send me a copy of this ppt. K.Viswanathan Saving..... Post Reply Close Saving..... Edit Comment Close By: viswanathan50 (29 month(s) ago) Pl se Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Chapter 16 Revenues, Sales Variances, and Customer Profitability Analysis: Chapter 16 Revenues, Sales Variances, and Customer Profitability AnalysisRevenue Allocation: Revenue Allocation Revenue allocation occurs when revenues, related but not traceable to individual products (services or customers), are assigned to individual products a Bundled product is a package of two or more products or services, sold for a single price, each with their own stand-alone prices Often called suite sales Allocate revenues to products based on selling prices or unit costs physical units stand-alone product revenues incremental revenues Pages 599 - 600Revenue Allocation – Stand Alone: Revenue Allocation – Stand Alone WordMaster $250 SpreadMaster $300 FinanceMaster $450 Suite price for all three products = $760 Allocation based on Stand-Alone Prices WordMaster $250 / $1,000 x $760 = $190 SpreadMaster $300 / $1,000 x $760 = 228 FinanceMaster $450 / $1,000 x $760 = 342 $760 Pages 600 - 601Revenue Allocation - Incremental: Revenue Allocation - Incremental WordMaster $250 SpreadMaster $300 FinanceMaster $450 Suite price for all three products = $760 Allocation based on Incremental Prices * FinanceMaster $450 SpreadMaster 300 FinanceMaster ($760 - $450 - $300) 10 $760 Pages 600 - 601 * Assume primary product is Finance, then Spread, then WordSales Volume Variance: Sales Volume Variance Static Budget Variance Pages 603 - 606 Flexible Budget Variance Sales Volume Variance Sales Volume Variance = (actual unit sales - budgeted unit sales) x budgeted contribution margin per unitSales-Mix and Sales-Quantity Variances: Sales-Mix and Sales-Quantity Variances Sales-mix variance Actual Actual Budgeted Budgeted = units of all x sales - sales x contribution products sold mix % mix % margin per unit Sales-quantity variance Actual Budgeted Budgeted Budgeted = units of all - units of all x sales x contribution products sold products sold mix % margin per unit Pages 606 - 608 Market-Share and Market-Size Variances: Market-Share and Market-Size Variances Market-share variance Actual Actual Budgeted Budgeted average = market size x market - market x contribution in units share % share % margin per unit Market-size variance Actual Budgeted Budgeted Budgeted average = market size - market size x market x contribution in units in units share % margin per unit Pages 608 - 610 Customer Profitability Analysis: Customer Profitability Analysis Consider profitability of individual customers taking into account: customer specific costs distribution channel costs customer support costs corporate sustaining costs Look at customers in terms of short-run and long-run profitability likelihood of retention growth potential increases in overall demand from well-known customers ability to learn from a customer Pages 611 - 616Mix and Yield Variances for Inputs: Mix and Yield Variances for Inputs Pages 620 - 623 Mix variance Actual Budgeted Actual total Budgeted = input - input x inputs x price per mix % mix % used input unit Yield variance Actual total Budgeted total Budgeted Budgeted = units of - units of x input x price per input used inputs used mix % input unit Mix and Yield Variances: Mix and Yield Variances Static Budget Variance Pages 620 - 623 Flexible Budget Variance Sales Volume Variance You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
teall cost 3 ch16 Mahugani Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 420 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: February 24, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: viswanathan50 (29 month(s) ago) pl send me a copy of this ppt. K.Viswanathan Saving..... Post Reply Close Saving..... Edit Comment Close By: viswanathan50 (29 month(s) ago) Pl se Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Chapter 16 Revenues, Sales Variances, and Customer Profitability Analysis: Chapter 16 Revenues, Sales Variances, and Customer Profitability AnalysisRevenue Allocation: Revenue Allocation Revenue allocation occurs when revenues, related but not traceable to individual products (services or customers), are assigned to individual products a Bundled product is a package of two or more products or services, sold for a single price, each with their own stand-alone prices Often called suite sales Allocate revenues to products based on selling prices or unit costs physical units stand-alone product revenues incremental revenues Pages 599 - 600Revenue Allocation – Stand Alone: Revenue Allocation – Stand Alone WordMaster $250 SpreadMaster $300 FinanceMaster $450 Suite price for all three products = $760 Allocation based on Stand-Alone Prices WordMaster $250 / $1,000 x $760 = $190 SpreadMaster $300 / $1,000 x $760 = 228 FinanceMaster $450 / $1,000 x $760 = 342 $760 Pages 600 - 601Revenue Allocation - Incremental: Revenue Allocation - Incremental WordMaster $250 SpreadMaster $300 FinanceMaster $450 Suite price for all three products = $760 Allocation based on Incremental Prices * FinanceMaster $450 SpreadMaster 300 FinanceMaster ($760 - $450 - $300) 10 $760 Pages 600 - 601 * Assume primary product is Finance, then Spread, then WordSales Volume Variance: Sales Volume Variance Static Budget Variance Pages 603 - 606 Flexible Budget Variance Sales Volume Variance Sales Volume Variance = (actual unit sales - budgeted unit sales) x budgeted contribution margin per unitSales-Mix and Sales-Quantity Variances: Sales-Mix and Sales-Quantity Variances Sales-mix variance Actual Actual Budgeted Budgeted = units of all x sales - sales x contribution products sold mix % mix % margin per unit Sales-quantity variance Actual Budgeted Budgeted Budgeted = units of all - units of all x sales x contribution products sold products sold mix % margin per unit Pages 606 - 608 Market-Share and Market-Size Variances: Market-Share and Market-Size Variances Market-share variance Actual Actual Budgeted Budgeted average = market size x market - market x contribution in units share % share % margin per unit Market-size variance Actual Budgeted Budgeted Budgeted average = market size - market size x market x contribution in units in units share % margin per unit Pages 608 - 610 Customer Profitability Analysis: Customer Profitability Analysis Consider profitability of individual customers taking into account: customer specific costs distribution channel costs customer support costs corporate sustaining costs Look at customers in terms of short-run and long-run profitability likelihood of retention growth potential increases in overall demand from well-known customers ability to learn from a customer Pages 611 - 616Mix and Yield Variances for Inputs: Mix and Yield Variances for Inputs Pages 620 - 623 Mix variance Actual Budgeted Actual total Budgeted = input - input x inputs x price per mix % mix % used input unit Yield variance Actual total Budgeted total Budgeted Budgeted = units of - units of x input x price per input used inputs used mix % input unit Mix and Yield Variances: Mix and Yield Variances Static Budget Variance Pages 620 - 623 Flexible Budget Variance Sales Volume Variance