Quantity Variance

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Quantity Variance

The difference between sales actually made and the estimated sales, multiplied by the sales price, over a period of time. For example, suppose a company expects to sell 1,000 units at $5 per unit each week. If it sells 1,200 units in week one, its quantity variance is $1,000 ([1,200 - 1,000] * $5). Likewise, if it only sells 700 in week two, the variance is -$1,500 ([700 - 1,000] * $5).

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