Chapter 107 Sales Variance Analysis
Measurement Need
To measure the differences and see where the deviations occurred.
Solutionsi
There are several formulas used to calculate sales variances:
- Sales value variance
- Sales price variance
- Sales volume variance
- Sales mix variance
The formulas for each will be outlined below, but for illustration purposes, the focus will be on sales value variance, sales price variance, and sales volume variance (italicized above), since these are three of the most common variables used to assess sales performance. The sales mix variance is best applied to companies with multiple products within several product lines. Readers are encouraged to visit the resources listed for this chapter, should they want more ...
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