Question
In an organization, the actual sales were ₹10 lakh
while the budgeted sales were ₹12 lakh. The cost was ₹6 lakh vs budgeted cost of ₹7 lakh. What is the sales volume variance?Solution
Sales volume variance = (Budgeted – Actual units) × Budgeted selling price Here, sales shortfall = ₹2 lakh → Adverse variance
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