Page 139 - P1 Integrated Workbook STUDENT 2018
P. 139

Advanced variance analysis





                           Sales mix and quantity variances






               3.1  What is it?

               This splits the sales volume variance into two parts.

                                         Sales volume variance




                      Sales mix variance                       Sales quantity variance

                      –    Has the profit changed              –     Has the profit changed
                           because the relative                      because the organisation
                           proportion of each                        sold more/less products
                           product sold changed?                     overall?
















































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