Consider the list of multinational companies shown below tagged C1 to C7. Also consider the list of variance types listed below tagged V1 to V7.

Companies:

• C1: PepsiCo (food and drinks; flagships: Pepsi, Lay’s, Ruffles)

• C2: Danone (food-products; products: yoghurts, desserts)

• C3: Inditex (clothing; flagship brand: Zara)

• C4: L’Oréal (personal care; products: shampoo; shower gel)

• C5: McDonalds (fast food company; flagship brands: McMenu; Sundae)

• C6: Nestle (food and drink processing corporation; products: chocolates; breakfast cereals)

• C7: Starbucks (chain of coffee houses; products: coffee; tea)

Variance types:

• V1: sales volume variance

• V2: flexible budget variance

• V3: sales price variance

• V4: variable cost variance

• V5: price variance (in the context of acquiring raw materials)
• V6: efficiency variance (in the context of acquiring raw materials)

Choose one of the companies and choose one of the variances and do the following:

i) Use an example (non-numerical) to explain the selected Variance for the selected Company and 

ii) Explain one possible cause for this variance to be Favourable.

We are not expecting you to have a deep knowledge of the companies, instead we need you to give sound and meaningful examples that could be real.