Sales Variances- Sales Price, Volume, Sales Mix and Sales Quantity Variances

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  • Опубликовано: 30 окт 2024

Комментарии • 28

  • @sb1835
    @sb1835 Год назад +1

    You are a VERY good teacher. Perfect and clear to understand. Thank you so much 🙏

  • @lamtatyan
    @lamtatyan 2 года назад

    "Why we times budgeted profit per unit or budgeted contribution per unit? This is because when the sales volume changes, the production cost also will change."
    Greatest explanation ever! I really don't know why those expensive textbook cannot managed to explain this logic in this simple and easy way! Thanks!

  • @moniquevanderwalt652
    @moniquevanderwalt652 2 года назад

    Thank you very much for these videos. Real life savers

  • @prasadmohanty3991
    @prasadmohanty3991 3 года назад

    Thank you soo much .Its really easy and deep down explanations
    please add more videos.

  • @joshuaaryeetey1096
    @joshuaaryeetey1096 2 года назад

    Very clear. Thank you for the lectures

  • @josphatmusiiwa3502
    @josphatmusiiwa3502 3 года назад

    now i have hope, and i am waiting patiently for the upload of budget preparation lecture, short term decision making and throughput costing and i check everyday for the notificication please please kindly upload

    • @managementaccountingmadeea5236
      @managementaccountingmadeea5236  3 года назад

      Hi, not to worry I will be uploading soon, unfortunately I can't give you the time, because I'm working on relevant costing at the moment. Please bear with me. Thanks

  • @anniendambi899
    @anniendambi899 2 года назад

    Thank you

  • @Immaculate3261
    @Immaculate3261 2 года назад

    very helpful this one

  • @playtostudy3090
    @playtostudy3090 Год назад

    Hello, how can i calculate total sale variance ? is there any formula except we take sales price variance + Sale volume variance ?

    • @managementaccountingmadeea5236
      @managementaccountingmadeea5236  Год назад

      It's called the total sales margin variance, you can calculate this variance by using this formula:
      Budgeted sales quantity x (Budgeted selling price per unit - Budgeted cost per unit) Less Actual sales quantity x (Actual selling price per unit - Budgeted cost per unit).
      You've to use the budgeted cost for both. Hope this helps

    • @playtostudy3090
      @playtostudy3090 Год назад

      @@managementaccountingmadeea5236 Thanks, but this formula, in essence, is still sales price variance + sales volume variance, right ?

    • @managementaccountingmadeea5236
      @managementaccountingmadeea5236  Год назад +1

      Yes, you are right. The total variance is the addition of the individual variances. Using the above formula, if you get a positive answer, then it's a (F) variance and a negative answer means it's an adverse variance.

  • @sazimordecai6124
    @sazimordecai6124 3 года назад

    insightful

  • @jikrasiddiqui9035
    @jikrasiddiqui9035 11 месяцев назад

    Mam can we write standard price instead of budgeting

  • @bonnyphilipbenny7404
    @bonnyphilipbenny7404 2 года назад

    A small doubt..
    Why can't we use actual contribution instead of budgeted when calculating sales volume variance?

    • @managementaccountingmadeea5236
      @managementaccountingmadeea5236  2 года назад

      Hi, thank you for the query.
      You always have to use the budgeted contribution per unit because the standards are set by the top management of the company so they would want to know (the variance) or how much they've gained or lost in their money value and not in the actual money value.
      If you refer material usage variance or labour efficiency variance, we use the standard rate and not the actual rate for the same reason I've mentioned above.
      So the rule is in standard costing when you convert any variance in money value you must use the standard rate.
      I think I've mentioned this in one of my videos but sorry can't remember exactly on which one.
      Hope this helps.

    • @bonnyphilipbenny7404
      @bonnyphilipbenny7404 2 года назад

      @@managementaccountingmadeea5236 thank you so much😍💓