P1-Total Review(11).pdf - Sales-Volume Variances...

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P1 串讲 Sales-Volume Variances Flexible Budget variance Static-budget profit variance Actual Static budget Flexible budget Static-budget contribution margin variance Sales-volume variances
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P1 串讲 Sales-Volume Variances The sales-volume variance is the difference between a flexible-budget amount and the corresponding static-budget amount. (the actual number of units sold- static-budget units sold )* budgeted unit contribution margin.
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P1 串讲 Sales-Volume Variances A greater understanding of the sales-volume variance can be obtained when it is broken down into the sales-mix variance and the sales- quantity variance. Sales-Mix Variance Measures shifts between selling more or less of higher or lower profitable products The sales-mix variance is best understood in terms of a composite unit a hypothetical unit with weights based on the mix of individual units.
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P1 串讲 Sales-Mix Variance Budgeted Sales Mix Percentage Actual Sales - Mix Percentage X Budgeted Contribution Margin per Unit Sales - Mix Variance = Actual Units of All Products Sold X - A favorable sales mix variance arises when the actual sales mix shifts toward the products having the largest contribution margins.
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