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Sir ,what’s the difference between calculating a total sales margin variance and a sales volume variance ?
The sales margin variance is the total sales variance. This is analysed into the sales price variance (due only to the difference in the selling price) and the sales volume variance (due only to the change in sales volume).
I do suggest that you watch our free lectures on ‘basic variances’ where this is explained.
(Our free lectures are a complete course for Paper F5 and cover everything needed to be able to pass the exam well).Basic sales variances are not likely to be examined for many marks in F5 (because they are revision of Paper F2) – the examiner is much more concerned about the advanced variances (mix and yield; and planning and operational).
Thank you sir. I have watched all the lectures, I was just confused and needed some clarification. I appreciate the reply sir, thanks again 🙂
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