Sales volume variance is budgeted unit price times the difference between actual inputs and budgeted inputs for the actual activity level achieved.

STANDARD COSTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	TRUE
B	FALSE

Explanation:

Detailed explanation-1: -The sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit. The formula is: (Actual units sold-Budgeted units sold) x Budgeted price per unit. = Sales volume variance.

Detailed explanation-2: -Sales volume variance focuses on the units sold. So, it calculates the difference between the actual and budgeted units sold multiplied by the budgeted selling price.

Detailed explanation-3: -Sales volume variance formula The formula generally used is: (Units sold – Projected units sold) x Price per unit = Sales volume variance.

Detailed explanation-4: -Sales volume variance is the difference between the number of units of a particular product that you sold, and the number of units you expected to sell.

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ECONOMICS

COST ACCOUNTING

STANDARD COSTING