Week 8 Checkpoint-- Revenue Variance Analysis

Week 8 Checkpoint-- Revenue Variance Analysis - may have...

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Week 8 Checkpoint: Revenue Variance Analysis The total revenue variance is = to actual revenue (minus) standard revenue The total variance is = to 568 – 596 The total revenue variance is = to -28 The total variance is a -28. Companies desire a positive value versus a negative because it shows that they have a larger quantity of services purchased at a higher price than they anticipated. Having a negative variance can be attributed to having a lighter patient load than expected. They
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Unformatted text preview: may have investments that did do as they hoped, or they business in other areas of the hospital like the gift shops or cafeteria performed less than projected. For the 2006 budget I would use the total operating revenue from this year to decrease the budget. The budget will be made to expect a lower patient load and also all for low performing investments. These adjustments will create a positive varience for the following year....
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