Sales-quantity variance

Sales-quantity variance is the portion of the sales-volume variance caused by total units sold differing from budget, holding the budgeted mix constant. Together with the sales-mix variance, it fully explains the volume effect on profit.

ByHoang TruongUpdated June 30, 2026

FrameworkStandard costing and variance analysis

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At the budgeted mix, 1,000 units would earn a weighted-average contribution of €16 each, or €16,000 in total. Because 1,200 units were actually sold, a favourable sales-quantity variance of €3,200 lifts that figure to €19,200. The mix is held constant throughout, so this €3,200 gain reflects total volume alone, before any mix effect is considered.

Where it fits

SubjectManagerial AccountingAdvancedTopicStandard Costing & Variance AnalysisAdvanced

The formula

LaTeX

SQV = (AQ_{\text{total}} - BQ_{\text{total}}) \times \overline{SC}_B

Variables

$A Q_{t} o t a l$: Actual total units sold across all products
$B Q_{t} o t a l$: Budgeted total units across all products
$S \overset{ˉ}{C}_{B}$: Budgeted weighted-average standard contribution per unit, weighted by the budgeted mix proportions (€ per unit)

Favourable when actual total volume exceeds budget; the budgeted mix is held constant so only the volume effect on profit is measured