Page 242 - Microsoft Word - 00 Prelims.docx

Chapter 10

8.1 Planning and operational variances for sales

The sales volume variance is split into a planning variance and an operational
variance.

Actual hours × standard margin
Market share variance
(operational)

Revised budgeted sales × standard margin
(to achieve target share of actual market

Market size variance (planning)
Original budgeted sales × standard margin

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