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Sales variances

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Sales variances

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 20, 2016 at 2:44 am #315899
    Fuad
    Participant
    • Topics: 10
    • Replies: 28
    • ☆

    Sir ,what’s the difference between calculating a total sales margin variance and a sales volume variance ?

    May 20, 2016 at 8:13 am #315996
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51538
    • ☆☆☆☆☆

    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).

    May 20, 2016 at 12:14 pm #316046
    Fuad
    Participant
    • Topics: 10
    • Replies: 28
    • ☆

    Thank you sir. I have watched all the lectures, I was just confused and needed some clarification. I appreciate the reply sir, thanks again 🙂

    May 20, 2016 at 1:13 pm #316058
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51538
    • ☆☆☆☆☆

    You are welcome 🙂

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    Posts
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