Sales variances
You'll learn to calculate and interpret the two key sales variances that appear in your Performance Management or Advanced Performance Management paper: sales price variance and sales volume variance.
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In this lesson
- 0:00 Sales variances overview
- 0:06 Sales price variance explained
- 0:40 Sales volume variance explained
- 1:19 Sales price variance worked example
- 2:57 Sales volume variance worked example
About this lesson
This video walks you through what each variance measures, how to calculate it, and how to spot whether it's favourable or adverse. Using a worked example, you'll see how to compare actual selling prices against budget and actual sales volumes against budgeted volumes—essential techniques for variance analysis in both marginal and absorption costing contexts. Master these variances and you'll confidently analyse profit deviations due to pricing decisions and sales performance.
Duration: 4m
Transcript
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