What is the formula used to calculate market share variance?
A)[(Actual industry sales in units - Budgeted industry sales in units) * (Budgeted market share percentage)] * (Budgeted average unit contribution margin)
B)[(Actual market share percentage - Budgeted market share percentage) *(Actual industry sales in units)] * (Budgeted average unit contribution margin)
C)(Actual quantity sold - Budgeted quantity sold) * Budgeted average unit contribution margin
D)(Actual quantity sold - Budgeted quantity sold) * Actual average unit contribution margin

Question

Quizplus · Accepted Answer

The formula for market share variance is the difference between actual market share percentage and budgeted market share percentage multiplied by actual industry sales in units and budgeted average unit contribution margin. Option B correctly represents this formula.

What Is the Formula Used to Calculate Market Share Variance