Sales variance analysis: how state-of-the-art analytical tools can contribute to increased profitability

Sales variance analysis: how state-of-the-art analytical tools can contribute to increased profitability

Written by
Evandro Pollono, Rolands Pupkevičs

Published on

11 November 2021

Type

Article

Read time

15 min

Abstract

This article explains sales variance analysis, a business intelligence tool to compare different financial results, enabling practitioners to determine which component drives changes in sales and take educated actions. The unique angle of this article is that it bridges theory—by delving into all the details of sales variance—with practice—by highlighting the managerial interpretation of what causes such changes and providing insights as to how to act upon it. It also suggests using this tool for marketing and not simple budgeting purposes, in stark contrast with most theory encountered by the authors.

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Written by
Evandro Pollono, Rolands Pupkevičs

Published on

Type

Article

Read time

15 min
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