The market size variance provides an indication of the proportion of sales volume variance that can be attributed to unexpected changes in market size.

Question

Quizplus · Accepted Answer

The market size variance measures the difference between the expected sales volume and the actual sales volume that can be attributed to changes in the total market size, indicating how much of the sales volume variance was due to the market expanding or contracting unexpectedly.

The Market Size Variance Provides an Indication of the Proportion