After Action ReconciliationSpending Reconciliation Format Good News Story $ $ Good News Story $ $ Bad News Story $ $ Bad News Story $ $ Total Explained $20 $20 The coster provides this p
Trang 1Explain Causes Of Variances With The Reconciliation
Format
Principles of Cost Analysis and Management
Trang 2Could the Battle of the Bulge Have Been Won if All Battle Maps of Ardennes Forest Looked Like This?
Trang 3Terminal Learning Objective
handouts, and awareness of Operational Environment (OE)/Contemporary
Operational Environment (COE) variables and actors
• Deliver effective cost intelligence briefing
• Describe content of effective cost intelligence briefing
Trang 43d ACR Feb 7, 2011 Non-deployables Review
21 pages
Trang 5How Can the Cost War Be Won if All Cost Reports Look Like
This?
• It can’t –
Trang 6After Action Reconciliation
Spending
Reconciliation Format
Good News Story $ $
Good News Story $ $
Bad News Story ($) ($)
Bad News Story ($) ($)
Total Explained $20 ($20)
Trang 7After Action Reconciliation
Spending
Reconciliation Format
Good News Story $ $
Good News Story $ $
Bad News Story ($) ($)
Bad News Story ($) ($)
Total Explained $20 ($20)
The coster provides this part: the credible intelligence
The coster provides this part: the credible intelligence
Trang 8After Action Reconciliation
Spending
Reconciliation Format
Good News Story $ $
Good News Story $ $
Bad News Story ($) ($)
Bad News Story ($) ($)
Total Explained $20 ($20)
The accountable, operational manager prepares and presents this part: the story
The accountable, operational manager prepares and presents this part: the story
Trang 9After Action Reconciliation
Spending
Reconciliation Format
Good News Story $ $
Good News Story $ $
Bad News Story ($) ($)
Bad News Story ($) ($)
Total Explained $20 ($20)
or variance
This is a favorable variance since actual cost is lower than expected cost
The technical accounting term for this is a “goodie” This is a favorable variance since actual cost is lower than expected cost
The technical accounting term for this is a “goodie”
Trang 10After Action Reconciliation
Spending
Reconciliation Format
Good News Story $ $
Good News Story $ $
Bad News Story ($) ($)
Bad News Story ($) ($)
Total Explained $20 ($20)
or variance
This is an unfavorable variance since actual cost exceeds expected
cost
The technical accounting term for this is a “baddie”
This is an unfavorable variance since actual cost exceeds expected
cost
The technical accounting term for this is a “baddie”
Trang 11After Action Reconciliation
Case A Case B Spending
What was Expected $X $X
What was Achieved $X - $20 $X+$20
Delta $20 ($20)
Reconciliation Format
Good News Story $ $
Good News Story $ $
Bad News Story ($) ($)
Bad News Story ($) ($)
Trang 12Check on Learning
Trang 13Exercise: Construct the AAR Reconciliation Slide
Trang 14Exercise: Construct the AAR Reconciliation Slide
Trang 15After Action Reconciliation
Spending
What was expected
What was achieved
Delta
Reconciliation
Total Explained
Trang 16After Action Reconciliation
Spending
Reconciliation
Total Explained
Trang 17After Action Reconciliation
Spending
Trang 18After Action Reconciliation
Spending
Reconciliation
Total Explained
More good news!
Trang 19After Action Reconciliation
Spending
Reconciliation
Total Explained
This is a “bad news” story
Trang 20After Action Reconciliation
Spending
Reconciliation
Total Explained
More bad news
Trang 21After Action Reconciliation
Spending
Reconciliation
Trang 22Check on Learning
• If actual cost is greater than planned cost, how will it be displayed in the After Action Reconciliation?
Trang 23Exercise: Redo the Previous AAR by Considering Volume Variance Effects
variable cost variable cost fixed cost variable cost
Trang 24Exercise: Redo the Previous AAR by Considering Volume Variance Effects
variable cost variable cost fixed cost variable cost
Trang 25Exercise: Redo the Previous AAR by Considering Volume Variance Effects
variable cost variable cost fixed cost variable cost
Trang 26Variance Template
Plan (100 units)
Volume Variance Flex
(80 units)
Perf.
Variance
Actual (80 units)
Var Cost
Fixed Cost
Total Cost
Trang 27Variance Template
Plan (100 units)
Volume Variance Flex
(80 units)
Perf.
Variance
Actual (80 units)
Trang 28After Action Reconciliation
Spending
Reconciliation
Total Explained
Trang 29After Action Reconciliation
Spending
Reconciliation
Trang 30Exercise: Redo the Previous AAR by Considering Volume Variance, Sales, and Profit Effects
variable cost variable cost fixed cost variable cost
planned a $10 per unit price
planned a $10 per unit price
got a $13 per got a $13 per
Trang 33After Action Reconciliation
Trang 34After Action Reconciliation
Trang 35manager
Trang 36Simple Cost Results and Reconciliation
Direct Cost
Indirect Cost
Reason 1: Change in Number of Units
Reason 2: Change in Direct Cost
Reason 3: Change in Indirect Cost
Reconciliation Explanation for Delta for Output A
Trang 37P&L View Results and Reconciliation
Fee Revenue
Cost
Reason 1: Change in Revenue
Reason 2: Change in Number of Units
Reason 3: Change in Cost
Reconciliation Explanation for Delta for Residual
Trang 38Unit Cost Results and Reconciliation
Reason 1: Change in Number of Units
Reason 2: Change in Direct Cost
Reason 3: Change in Indirect Cost
Reconciliation Explanation for Unit Cost Delta
Trang 39Check on Learning
Trang 40Spreadsheet Exercise