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hree legs of remuneration variance analysis are elaborated in the articles and after compared with each other, we can find the competitive advantages of chassis 3 thinking, which is also considering the strategies to specific products. Besides, from such comparison, I construct a deep feeling about the significance of average analysis tool. Without a scientific analysis tool, the cognitive process of accomplishment will be easily misinterpret and finally mavin the executives to wrong decisions. ?Phase 1 analysis simply does non falling out down the overall halcyon variance agree to the notice underlying causal factors but except not bad(p) earlier explans the difference between actual profit and the budgeted profit, however, this order is the almost common method used in the yearbook reports because it is prison term saving and easy to understand by the users. even so though it saves a lot of time and labor exist, the settlement is misleading, which is more(prenominal) important to users. In this method, the performance is satisfied salutary because the company spent less than budgeted. ?Phase 2 reflects an advance in the analysis because it considers key casual factors, like foodstuff place share, sales assortment and selling price, and makes the analysis more just and close to reality.

This is important to the managers because they can find the areas where they rightfully do better or worse and aovid the situation that favorable aspects and hostile aspects are combined together and averaged. In this method, the performance is considered good, though specific areas, such as admi nistrative cost control, gather up attentio! n and improved. However, the item sales mix is applied in this approach, without considering differing strategic contexts facing product EM and product EI. down the stairs such situation, in my opinion, profit analysis is definitely crushed away from companys strategies and specific products strategies, which are superior general priciples to operation and place the long-term plan of products, and finally combat injury the future...If you require to get a full essay, order it on our website: BestEssayCheap.com

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