Chat with AI
Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher
Edition 3ISBN: 0073527114Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher
Edition 3ISBN: 0073527114Industry Volume and Market Share Variances: Missing Data
The following graph is similar to the one presented in Exhibit 17.4. Actual sales volume for the firm is below its budgeted sales volume.
Required
Find the missing amounts:
a. Actual minus budgeted sales volume.
b. Budgeted industry volume.
c. Budgeted market share percent.
d. Actual market share percent.
e. Actual industry volume.
Verified
Step 1 of 5
Industry volume variance shows the deviation of sales activity variance in comparison to industry volume. The market share variance shows the deviation of activity variance in comparison to market share which is the share of market that the company holds in the industry which shows the total sales of the product of the company as a percentage of total market sales.
a.
Actual minus budgeted sales volume is 15,000 fewer units calculated as under:
The company’s actual sales volume was of 37,500 more units and budgeted sales volume of the company was 52,500 fewer units.
Step 2 of 5
Step 3 of 5
Step 4 of 5
Step 5 of 5
Why don’t you like this exercise?
Other
