ACCA PM Syllabus D. Budgeting And Control - Sales Mix and Quantity Variances - Notes
Sales Variances
Where a company sells several different products that have different profit margins, the sales volume variance can be divided into a sales quantity (sometimes called a sales yield variance) and sales mix variance.
The quantity variance measures the effect of changes in physical volume on total profits.
The mix variance measures the impact arising from the actual sales mix being different from the budgeted sales mix.
The variances can be measured either in terms of contribution margins or profit margins.
Previous
Materials total, price and usage variances
Syllabus D. Budgeting And Control
D4. Material mix and yield variances
Next up
Planning and Operational Variances for sales
Syllabus D. Budgeting And Control
D6. Planning and operational variances