Hello Sir! Chapter 8, Exercise 4 says to calculate the sales quantity variance and i don't quite understand how to calculate it. Can you please elaborate further with an example? It will be very helpful! Please reply asap :)
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Sales Quantity Variance
Hi, thanks for your question.
The sales quantity variance and sales mix variance can be used to explain our traditional sales volume variance in cases where the products sold are substitutable.
In terms of the calculations - these are very similar to the material mix and yield variances which are dealt with in the same section of the notes.
However, please see this link for a full explanation and working for the question you are referring to:
https://opentuition.com/acca/f5/acca-f5-sales-mix-variance/
This video is from our ACCA resources but covers everything you need for sales variances for CIMA P1 too.
Kindest Regards,
Cath
Hi Cath,
Happy to let you know that I sat for my P1 Exam and passed!
Best,
Shavi
That's wonderful news - I'm so pleased for you.
Glad to help and maybe see you on the P2 forum sometime in future. :-)
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