week VII. RESEARCH ON MARKETING VARIANCES. Research Paper

RESEARCH ON MARKETING VARIANCES
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Introduction
This research on the topic of marketing variances will facilitate a full understanding of variances, the association evident in the sales price and quantity deviations, and finally, details about sales and mix variance. Variance displays the difference between the budgeted and the actual results of an activity such as sales. It explains and gives insights to validate decision making.
Marketing Variances
To understand the marketing variances, we must get to know that variances are deviations that are caused by different factors in the business world. These changes may be subject to the volume of sales, among other elements in the market. Therefore, marketing variances are tools used by management to determine the performance of a business in a given period by comparing the volume of sales and the projected budget (Liang & Gao, 2020). The marketing variances may also factor in the sales variance analysis, which helps understand an individual’s business performance.
The particular factors taking place in the business environment will contribute to variances in the volume of sales. This contributes to the marketing variances. The analysis type is used in the marketing field to determine ways to create good performance in volume.
Association between the sales price and quantity variance
To get the variance on sales price, you have to determine the dissimilarity in the number of actual sales at the market price and the actual sales at the budgeted cost since they will always have a gap in rates (Grubisic & Galzina, 2019). There are so many changes that may occur in the market, and this makes the company either fail to sell all the budgeted units or the price found in the market is different from their expectation. It explains why the difference in the sales price.
In contrast, the quantity variance is the difference between the actual usage of something and the expected usage. Further illustration on this is when someone needs to work on a building construction whose standard quantity of cement required is 200 bags, and the actual usage happens to be 230 bags of cement, then there is a quantity variance of 30 bags.
The quantity variance helps to gauge who did not do their work responsibly. The material used may have had a hike in the prices to a level that was not expected (Wales, et.al, 2020). Also, there could be discrepancies in acquiring the elements which cannot be easily noted, but the quantity variance identifies the problem.
The sales price can either be favourable or unfavourable. It can be on the positive side if due to inflation, a higher rate than expected is seen, and the negative side is seen when the demand curve slopes downward.
The sales department plays a big role in ensuring that there is no lower sales price than th...