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I want to ask that for sales planning and operational variance we take standard contribution or standard profit margin?
As always with the sales variances (whether it is planning and operational or not) it depends on whether they are using marginal costing (in which case standard contribution) or absorption costing (in which case standard profit).
In either case it only affects the sales volume variances – the sales price variances are the same either way.I do suggest you watch my free lectures on variances. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
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