CMA Study Group

Sales Volume

  • 1.  Sales Volume

    Posted 28 days ago
    CMA Study group I need help... if a question is asking for sales volume variance, will I be looking at just volume or operation Income.

    On my test bank, I was solving question asking for Sales volume variance. I assumed it to be the difference between actual and budgeted quantity only but the correct answer was considering operating Income between actual and standard...please advise... I feel like I really get confused with CMA questions wording


    Thanks

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    Sadia Khan
    Analyst
    Frisco TX
    United States
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  • 2.  RE: Sales Volume

    Posted 27 days ago
    I am currently using the Wiley CMA review.  I know they will ask the sales volume variance to be calculated using standard contribution margin  or standard price.

    (Budgeted Quantity - Actual Quantity)  x  Standard Contribution Margin or Standard Price

    When they break down the Sales volume variance into Mix and Quantity they also use contribution margin to calculate. Hope this helps.

    Chris

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    Christopher Concepcion
    Analyst
    Burke VA
    United States
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