W6 - Sales Variance LEARN ALL Flashcards

1
Q

Sales volume variance

A

(Actual sales volume - Budgeted sales volume) x Standard Profit

Standard profit = Standard selling price - Standard cost per unit

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2
Q

Sales price variance

A

(Actual Selling Price − Budgeted Selling price) × Actual Sales Volume

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3
Q

Sales Volume - Further split

A

Sales volume variance can also be split into two further variances:

  • Quantity
  • Mix
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4
Q

Sales Mix Variance def. and formula

A

It indicates the effect on profit of changing the mix of actual sales from the standard mix.

(Actual sales vol. x Average prof. per unit in actual mix) - (Actual sales vol. Average prof. per unit in standard mix)

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5
Q

Sales Quantity variance def. and formula

A

It indicates the effect on profit of changing the total amount sold from the budget (valued at average contribution per unit).

(Actual sales vol. x Average prof. per unit in standard mix) - (Budgeted sales vol. x Average prof. per unit in standard mix)

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6
Q

Sales Quantity Variance split

A

Market share variance
Market size variance

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7
Q

Market size variance

A

[(Budgeted market share x Actual Market Size) -Budgeted Sales Volume] x
Standard Contribution per unit

Budgeted sales vol = Budgeted market share x Budget market size

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8
Q

Market Share Variance

A

[Actual sales vol. - (Budgeted market share x Actual market size)] x Standard contribution per unit

Actual sales vol = Actual market share x actual market size

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