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sales vairances

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › sales vairances

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • November 28, 2014 at 7:16 pm #214176
    bilal
    Member
    • Topics: 12
    • Replies: 10
    • ☆

    what are the reasons for adverse and favourable sales price and sales volume variances?

    November 29, 2014 at 11:39 am #214299
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54754
    • ☆☆☆☆☆

    You really should not need to ask this question – have you watched the free lectures on variances?!!

    If sales price variance is favourable it means we must be charging a higher price than the standard price.

    If sales volume variance is favourable it means we must be selling more than budgeted.

    Vice versa for adverse variances.

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