In what ways can we analyse sales variances. Explain in detail.

Companies regularly analyze sales variances to explain revenue performance over a monthly, quarterly or yearly accounting cycle. The resulting sales variance explanations help firms isolate problems and gear their future sales and marketing efforts towards increased sales growth. The sales variance analysis relies on a comparison benchmark -- usually a firm's sales budget. Fluctuations in actual versus budgeted sales may have several explanations, requiring diligent analytical work to reveal the underlying causes.

Sales Price and Production Variances

When reviewing past sales results, an analyst compares them to budgeted, or estimated, sales performance for the company. When results do not line up, the analyst must find a plausible and ________ __________ ________ _______ _____ ______ ___ __________ _____.
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