Sales Variances When MORE THAN ONE Product is Sold Thus far, we have assumed that our example company sells only one product. Now, we will change that to assume it sells two products, Product a and Product B. When more than one product is sold, we will have a Sales Price Variance (the Flexible Budget Variance) similar to what we had for a single product firm, although it will be calculated differently. Furthermore, the Sales Volume Variance will be subdivided into a Sales Mix Variance aid a Sales Quantity Variance.This will be similar to what was done for manufacturing input variances when there was more than one input into tfie product. Do not let the similar names for these variances conluse you. There are slightly differenttenns 1ora single product firm and a multiple product firm. The Sales Quantity Variance tor a multi-product firm is calculated in a different way from the way the Sales Volume (Quantity) Variance is calculated for a single product firm
Posted on: Tue, 10 Sep 2013 08:32:09 +0000
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