Get the Best Services of Production-Volume Variance and Sales-Volume Variance Homework Help
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What is Production volume variance?
Production volume variance is an exact measurement that explains how to evaluate the amount that is applied overhead to produce units. It is known as the difference between units produced in actual number and budgeted number of units, and this is multiplied by per unit of standard profit.
So, Sales Volume Variance = Standard Profit per Unit x (Actual Unit Sold – Budgeted Unit Sales)
Here, absorption costing is used to express this.
However, in case of marginal costing used, you will get
Sales Volume Variance = Standard Contribution per Unit x (Actual Unit Sold – Budgeted Unit Sales)
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What is Sales volume variance?
Sales volume variance is an exact amount of gain that a company earns when it has some more quantity of units produced during manufactured of budgeted number of units.
How is production-volume important for sales-volume?
Now, production-volume variance and sales-volume variance homework help explain that what is an appropriate relationship between production volume and Sales volume? It must be clear that both terms are directly proportional or linked straightly. In case a business produces more units of products for its inventory, then it has more number of actual units than budgeted amounts.
However, only in case, there is production volume, then any company is able to earn gain otherwise not. So, these both terms depend on each other.
In addition, different related terms are always there with perfect value to get a proper analysis of sales-volume difference. Now, you must know these when you solve live cases through your assignments. Production-volume variance and sales-volume variance assignment help explain that analysis is done properly, and thus favourable sales volume variance and adverse sales mix variance are important to know.
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