- This topic has 4 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Will sales qty variance for 2 prodcts sold in a a sales mix differ according to the method used? For eg refer qs 73 of bpp revsn kit(carad).in that i used the method given in bpp text bk to get sales qty variance of 40700 in total (plasma-29600 &lcd-11100) ,but the answer looked different
No – there is only one answer (even though you can use different methods by all means, they all will give the same answer).
Then please explain to me what went wrong my calculations were:-
Plasma. LCD
Bdgtd qty. 590. 590
Act qty. 750. 650
Difference. 160. 60
Wghtd std cont pu. 185. 185
Variance. 29600. 11100If you want to calculate the sales quantity variance using the weighted standard contribution, then you apply it to the difference between the total actual and budgeted sales (not the sales for each unit separately).
This is because the sales quantity variance assumes they sell in standard mix. (The mix variance deals with any change of mix).
- You must be logged in to reply to this topic.