What Is The Formula Of Sales Volume Variance?
The formula for Sales Volume Variance is the difference between actual sales and budgeted sales, multiplied by the budgeted selling price. It is represented as (Actual Sales – Budgeted Sales) x Budgeted Selling Price. Sales Volume Variance helps in measuring the difference between the expected level of sales and the actual level of sales, which can aid in the identification of opportunities for improvement in sales strategies and forecasting.