CMA Study Group

 View Only
  • 1.  Two contradicting answers SALES VARIANCE , can anyone explain?

    Posted 06-11-2022 08:59 AM



    ------------------------------
    Tayba Al-Mehdar
    Controller
    Khobar
    Saudi Arabia
    ------------------------------


  • 2.  RE: Two contradicting answers SALES VARIANCE , can anyone explain?

    Posted 06-12-2022 02:31 AM
    Hi

    Sales volume variance is the difference between actual sales volume and budgeted sales volume multiply with standard contribution margin
    question one standard contribution margin is
    120,000/ 12000 = 10
    (Actual sales - budgeted sales )  x sCm
    ( 11000 - 12000 ) x 10
    -1000x 10  = 10,000 U

    Question 2

    SCM is 6 - 3.5 = 2.5
    42000-40000= 2000 x 2.5 = 5000 F

    ------------------------------
    Furqan Ali Raza
    Accountant
    Dubai
    United Arab Emirates
    ------------------------------



  • 3.  RE: Two contradicting answers SALES VARIANCE , can anyone explain?

    Posted 06-12-2022 03:00 AM
    In flexible budget actual data is used with standard price , that's why difference Between flexible budget and static budget is due to 1000 units which were sold less , so your contribution margin will be reduced due to difference of sales volume which is -1000 x 10 , 10000 U

    ------------------------------
    Furqan Ali Raza
    Accountant
    Dubai
    United Arab Emirates
    ------------------------------