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.
Volume variances refer to the differences between the actual volume of sales or production and the expected (budgeted or planned) volume. These variances can be further divided into specific categories like fixed overhead volume variance and sales margin volume variance.
