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Sales quantity variance

The sales quantity variance measures the effect of total actual sales units differing from budget while retaining the budget sales mix. Value the quantity difference using weighted standard contribution or profit per composite unit, on the required costing basis. Together with sales mix variance it reconciles the total sales volume effect. The interpretation assumes the unit mix and standard measures are meaningful across the products.

Worked example

Budget sales total 100 units, actual 120, and budget weighted contribution is $6 per unit. Quantity variance is 20 × $6 = $120 favourable before any mix effect.

Common mistake

Do not use the actual mix-weighted contribution to calculate a variance intended to hold budget mix constant.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA PM Direct September 2026–June 2027