\u00a92002 Prentice Hall Business Publishing, Introduction to Management Accounting 12/e, Horngren/Sundem/Stratton
Analytical Framework used for
-Identify the key causal factors that affect profits.
- Break down the overall profit variance by these causal factors.
- Estimate the degree of impact of each factor on the profit.
- Try to calculate the specific, separable impact of each causal
factor by varying only that factor, holding all other factors
- Add complexity sequentially, one layer at a time.(peel the onion)
-Stop the process digging dip when the further digging is not