Sales Margin Volume Variance, often referred to as Sales Volume Variance, in standard costing, measures the adverse or favorable variance arising from the difference between the actual number of units sold and those budgeted, valued at the standard profit margin.
Sales volume variance is the difference between the budgeted sales quantity and the actual sales quantity, valued at the standard profit per unit or standard contribution margin per unit. It measures the impact of sales volume fluctuation on the financial performance of a business.
