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Smart Reasoning:

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Qaagi - Book of Why

Causes

Effects

a difference between the budgeted sales price and the actual sales price(passive) is caused byVariance A sales price variance

the actual selling price differing from that budgeted(passive) caused bySales Price Variance Change in revenue

a change in the price of a product or service(passive) is caused byThe selling price variance

the difference in actual and budgeted selling price(passive) caused solely byThe selling price variance

Forexample , an increase in the price of a productwill resultin afavourable sales price variance

a difference between a. actual and standard contribution margin(passive) is created byThe sales price variance

Even though you might have sold fewer dresses than you planned , you were still able to sell your goods for more than you wantedresultingin a favourable sales price variance

Volume(passive) Caused bySales Variance

Mix(passive) Caused bySales Variance

Price Using the numbers given above in the example(passive) Caused bySales Variance

so lely by the difference in actual and budgeted selling pricecausedso lely by the difference in actual and budgeted selling price

alsomay ... causealso

due to the change in the number of actual sales quantity of the product as compared to the budgeted quantityresultsdue to the change in the number of actual sales quantity of the product as compared to the budgeted quantity

to bullwhip effect for the MRO manufacturer despite constant consumption by the customerleadsto bullwhip effect for the MRO manufacturer despite constant consumption by the customer

$ 3.3 millioncontributed$ 3.3 million

in operational inefficiencies for one competitor when compared to another who has chosen the more efficient islandwill resultin operational inefficiencies for one competitor when compared to another who has chosen the more efficient island

people to help think about investing in a comprehensive open fireplacecan causepeople to help think about investing in a comprehensive open fireplace

to Unlimited SpendingLeadsto Unlimited Spending

the many opportunities(passive) created bythe many opportunities

an environment where gold and silver prices would continue to attract investment capital , pushing prices highercreatesan environment where gold and silver prices would continue to attract investment capital , pushing prices higher

a risk free profithence creatinga risk free profit

bias(passive) caused bybias

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Smart Reasoning:

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