Sales Quantity Variance

Importance and Limitation of Sales Quantity Variance

Introduction: Sales Quantity variance is the difference between actual quantity and budgeted quantity of unit sold during a specific time and multiply the resulted quantity with standard price. The formula for calculating sales quantity variance is simple and easy to understand, Sales quantity variance= (Expected Quantity – Actual Quantity) × Standard Rate Example to Understand …

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Sales Quantity Variance: Definition, Formula, Explanation, And Example

Definition: A difference between the number of units used/sold and the number of units that were anticipated to be used/sold is known as a quantity variance. Hence, the sales quantity variance assesses the increase or decrease in budgeted profit occurring due to a variation between the actual and budgeted number of units sold. Formula: There …

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