Enter the budgeted sales volume (units) and the actual sales value (units) into the Calculator. The calculator will evaluate the Sales Quantity Variance.
Sales Quantity Variance Formula
SQV = BSV - ASV
Variables:
- SQV is the Sales Quantity Variance (units)
- BSV is the budgeted sales volume (units)
- ASV is the actual sales value (units)
To calculate Sales Quantity Variance, subtract the actual sales volume from the budgeted sales volume.
How to Calculate Sales Quantity Variance?
The following steps outline how to calculate the Sales Quantity Variance.
- First, determine the budgeted sales volume (units).
- Next, determine the actual sales value (units).
- Next, gather the formula from above = SQV = BSV – ASV.
- Finally, calculate the Sales Quantity Variance.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
budgeted sales volume (units) = 780
actual sales value (units) = 700
FAQs
What is Sales Quantity Variance?
Sales Quantity Variance (SQV) is a measure used to determine the difference between the budgeted sales volume and the actual sales volume. It helps in assessing the effectiveness of sales strategies and operational efficiency.
Why is calculating Sales Quantity Variance important?
Calculating SQV is important for businesses to understand their sales performance. It helps in identifying discrepancies between planned sales and actual sales, allowing businesses to take corrective actions, adjust their sales strategies, and improve their forecasting accuracy.
Can Sales Quantity Variance be negative?
Yes, Sales Quantity Variance can be negative. A negative variance indicates that the actual sales volume is less than the budgeted sales volume, suggesting underperformance in sales relative to expectations.
How can businesses improve their Sales Quantity Variance?
Businesses can improve their SQV by analyzing the factors contributing to the variance, such as market trends, competition, and internal processes. Implementing more accurate forecasting methods, enhancing sales strategies, and improving product or service offerings can also help in minimizing negative variances.
