Page 107 - 5.2 i. Manac Costing ITC Summarised Notes
P. 107
STANDARD COSTING
Market size variance
• For example, let's say that your company has a 20%
share of the market for a certain product, and that
when you made your budget, the market for this
product was expected to be for 110,000 units. However,
the most recent industry projections are estimating that
the market has grown to 120,000 units. If your profit
per unit is R50, you can calculate a market share
variance using the formula:
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