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

    Posted 24 days ago



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    Tayba Al-Mehdar
    Controller
    Khobar
    Saudi Arabia
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  • 2.  RE: Two contradicting answers SALES VARIANCE , can anyone explain?

    Posted 23 days ago
    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

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    Furqan Ali Raza
    Accountant
    Dubai
    United Arab Emirates
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  • 3.  RE: Two contradicting answers SALES VARIANCE , can anyone explain?

    Posted 23 days ago
    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

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    Furqan Ali Raza
    Accountant
    Dubai
    United Arab Emirates
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