File Summary Reports may include period totals together with variances and % variances between selected files as below:
Note: the calculation of variances here is totally dependent on the order in which files are selected and not on the years of the files concerned.
Suppose file 1 is 2010 actual and file 2 is 2010 Plan.
- ‘Totals & Variance vs. Prev.File’ would include a column containing 2010 plan - 2010 actual.
- ‘Totals & File 1 Var vs. other files’ would include a column containing 2010 actual - 2010 plan.
Volume/Price/Exchange Variances Analyses
It is often useful to explain variances in of sales between two or more files by splitting total variances into the volume price, exchange and new product contributions. When IFP calculates variances between values in file A against those in file B, the following basic variance calculations are carried out:
Volume = (File A units – File B units) * File B price Price = File A units * (File A price - File B price) Exchange = File A value @ File A rates - File A value @ File B rates
The above calculation is carried out for each month within the selected analysis period and the results summed to give the total for each variance component.
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