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Sales Volume Variance

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Sales Volume Variance

  • This topic has 4 replies, 2 voices, and was last updated 10 years ago by Sir Insanity.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
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  • July 2, 2015 at 1:01 am #259275
    Sir Insanity
    Participant
    • Topics: 28
    • Replies: 44
    • ☆☆

    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.

    July 2, 2015 at 1:27 am #259276
    HazE
    Participant
    • Topics: 11
    • Replies: 84
    • ☆☆

    It would be false. In marginal costing we cost it at standard CONTRIBUTION per unit

    July 2, 2015 at 9:29 pm #259374
    Sir Insanity
    Participant
    • Topics: 28
    • Replies: 44
    • ☆☆

    @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.

    July 2, 2015 at 10:17 pm #259379
    HazE
    Participant
    • Topics: 11
    • Replies: 84
    • ☆☆

    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

    July 8, 2015 at 12:03 am #259916
    Sir Insanity
    Participant
    • Topics: 28
    • Replies: 44
    • ☆☆

    @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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