All 38 Variance Analysis questions
More in Variance Analysis
What are the possible causes of an adverse material usage variance? What are the possible causes of an adverse labor efficiency variance? What are ideal, attainable, and basic standards? What is the sales mix variance? What is the significance of controllable versus uncontrollable variances? How does the timing of the materials price variance calculation matter? How do you decide the significance of a variance statistically? What causes a favorable labour rate variance and an adverse one? How is the fixed overhead variance analyzed under absorption costing? What is the difference between the sales volume variance valued at contribution versus profit?
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Budgeting & Forecasting › Variance Analysis

What is the sales quantity variance?

Intermediate

Answer

The sales quantity variance measures the effect on profit/contribution of total sales volume differing from budget, at the budgeted mix. Together with the sales mix variance it makes up the sales volume variance, separating 'how much we sold in total' from 'the blend of what we sold'.
Real-world example Selling more units overall (at standard mix) gives a favorable sales quantity variance.

Common follow-ups: What two variances form the sales volume variance? | What does quantity hold constant?

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All 38 Variance Analysis questions