In today's competitive environment, the companies should choose a particular strategy to gain a competitive advantage over their competitors. However, when evaluating the success of the chosen strategy, considering only profit increases only year-over-year has a limited use. Profitability increases come from changes in sale price, product costs and/or sales volume. Using variance analysis for determining the reasons for these changes and relating them back to the strategy, will enable us to evaluate whether or not the companies are progressing progress in line with their strategic aims. The aim of this study is to show how can we use the variance analysis in the short term to evaluate the success level of the chosen strategy.
Strategic Analysis of Income, Short Term Perspective, Throughput Accounting
|Author :||Rifat YILMAZ|
|Number of pages:||7-22|