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When calculating the actual contribution, why don’t we add sales volume contribution variance to the standard contribution from actual sales ( sales volume contribution variance is favourable), Sir?
Because the sales volume contribution variance is the difference between the budget contribution and the standard contribution from the actual sales.
So if you are given the budget contribution then you do add the sales volume variance to get the standard contribution (and then afterwards adjust by all the other variances.
But if you already know the standard contribution from actual sales, then the sales volume variance is not relevant.
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