CONTROL &

OPERATING
ACTIVITIES

REPORTER: DULCE L. BRYANT
The students will be able to:

1. Recognize budget as a tool for motivation and
explore the various incentive system
2. Discuss the role of communication in the control
process and the use of budgets for interim evaluation
3. Discuss variance analysis and the rationale for doing
it
4. Explain flexible or variable budgeting and its
variance analysis
5. Discuss revenue variances
6. Discuss the implications for nurse managers
Uses and Advantages of Budgeting
Variance Analysis

FORMULA:
FORMULA:
FORMULA:
FORMULA:
OVERHEAD VARIANCE

REVENUE ANALYSIS

What Is Revenue Analysis And How Does It
Work?
We know revenue can refer to income, sales or
turnover, monetary units or just plain money.
From here, we get the idea of what revenue
analysis means. It’s a deliberate, detailed and
well-researched report that indicates revenue
for all activities in a company. This can range
from sales (products and services), costs,
income, and other variables. Revenue analysis
is important for business. With it, you can
ensure your plans and strategies do not deviate
from your goal.
Benefits And Importance Of Revenue Analysis
Helps You Make Informed Decisions
All that recording, research, and documentation can only be
vital to your business. For every decision you make, you’d
want it to be from a position of strength. From revenue
analysis, you get to learn and understand the workings of
your business. Also, you weigh each preceding financial and
production year against the next. It puts you in a favorable
condition planning for the future.
It’s normal for some products to outstrip others in sales and
demand. It’s not uncommon for a business to consolidate on
areas that yield more profits for the business. From such
analysis, you gain insight on how to improve areas where
your products and services have failed or are deficient in.
Part of the informed decisions is whether to increase your
firm’s revenue. It’s all about getting the best results with
minimal expenditure.
 References

 https://opentextbc.ca/principlesofaccountingv2ope
nstax/chapter/describe-how-and-why-managers-us
e-budgets
/
 CERTS KNOWLEDGE ENGINEERING TEAM
 CAT LEVEL 2 RCA REVIEWER
 https://www.leadsquared.com/revenue-
analysis/#:~:text=From%20here,%20we%20get
%20the%20idea%20of%20what,other%20variables.
%20Revenue%20analysis%20is%20important%20for
%20business.