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MASales Volume Variance

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SISir Insanity11y ago
Sup guys, Help me out? Sales Volume Variance is the same whether absorption or marginal costing is used. T or F? I *think* it's True but I'm not sure. What are your POV's? Any and every help is appreciated. Thanks.
HHazE11y ago#1
It would be false. In marginal costing we cost it at standard CONTRIBUTION per unit
SISir Insanity11y ago#2
@hazzy said: It would be false. In marginal costing we cost it at standard CONTRIBUTION per unit
That makes sense... except isn't sales volume measured in units, per se? So won't the vol. variance be in terms of units? And thanks for replying.
HHazE11y ago#3
Yeah but you have to give the cost of it...quantity wise it will be same but we value it differently...Because when we talk about sales we wanna know the dollar amount...not just the quantity
SISir Insanity11y ago#4
@hazzy said: Yeah but you have to give the cost of it...quantity wise it will be same but we value it differently...Because when we talk about sales we wanna know the dollar amount...not just the quantity
Oh okay I got it now. So basically, it's UnitsSold*x/Unit, where 'x' is contribution for MC and gross profit for AC? Is that it? Thanks a lot dude!
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