What Is Sales Variance?

Sales variance analysis is a measure of the differences and causes between actual sales and planned sales. Assume that the annual plan requires 40 million yuan in product sales in the first quarter, but at the end of the first quarter, actual sales of 20 million yuan will be achieved, and the sales performance gap will be 20 million yuan, which is 50% of expected sales. The analysis of sales variance is to evaluate in detail how much of the outstanding amount in this quarter was due to lower prices. ^[1]