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Once we have the plan developed and company operations begin to execute the plan it is critical to understand the differences in results in exact
Once we have the plan developed and company operations begin to execute the plan it is critical to understand the differences in results in exact detail. This detailed review requires an understanding of costs and how they are affected by price and quantity differences from plan. Consider yourself the business manager of a paper processing plant. You are working with a budget/plan that suggests your monthly products produced would cost the company $1,250,000. After the first few months, you have realized the monthly cost was increasing but the work effort put in by the operations has not changed. Discuss what your further analysis would be focused upon and provide an example of why the differences could be related to price, or to quantity, or both. Explain all three and provide examples to support your discussion
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