Assume you are marketing manager for SJM Ltd in exercise 11.14, and the accountant explains that when the actual results were compared with budget results he found a favourable sales price variance, an unfavourable sales volume variance and an unfavourable variable expense variance.

Required

A. For which of these three variances would it be reasonable for the accountant to expect you, as marketing manager, to take responsibility?

B. Explain what could have caused the sales price variance, the sales volume variance and the variable expense variance.