Points to stress Actual prices are used in variance analysis only in the actual column used to calculate the FBV as in Chapter 15). In contrast, both the FB and the SB are based on the BP of inputs and outputs. The FB and SB are also based on the budgeted quantity of inputs per output. Hence, both the FB and the SB are based on the budgeted CM per output. Teaching tip The following tabulation shows why the total SVV is the difference between the actual and expected outputs, multiplied by the unit CM. FB SBRevenue xxx SVV xxx VC xx SVV xx CM xx SVV xx FC x NEVER A SVV * x Op. Inc. x SVV x * As long as actual and expected outputs are in the same relevant range.
