sales-revenue variancethe difference between the budgeted value of SALES and the actual value of sales achieved. This variance can be broken down into two parts:
- sales-price variance, which shows the difference between the predetermined price of a product and the actual price;
- sales-volume variance, which indicates the extent to which sales revenue has been lost because smaller volumes of products were sold than were budgeted for.
Both of these are affected by sales mix, and the sales-mix variance shows the effect on revenue of achieving an actual mix of sales different from the product mix anticipated in the sales budget.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson