The Sales Margin Mix Variance (Sales Mix Profit Variance) in standard costing measures the financial impact of changes in the actual mix of sales compared to the standard or budgeted sales mix. It isolates the portion of the sales volume variance attributable to variations in the product mix.
An essential concept in managerial accounting, Sales Mix Profit Variance looks at the difference in actual profit compared to budgeted profit, considering the sales mix. It helps businesses understand the impact of variations in product sales mix on overall profitability.
