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

Author

Listed:
  • Evandro Pollono

    (Hinterhuber & Partners)

  • Rolands Pupkevičs

    (Hinterhuber & Partners)

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.

Suggested Citation

  • Evandro Pollono & Rolands Pupkevičs, 2023. "Sales variance analysis: how state-of-the-art analytical tools can contribute to increased profitability," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(1), pages 57-71, February.
    • Handle: RePEc:pal:jorapm:v:22:y:2023:i:1:d:10.1057_s41272-021-00369-0
    DOI: 10.1057/s41272-021-00369-0
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    References listed on IDEAS

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