Crowd effect

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The volume effect is in business by value part of a revenue deviation is responsive to the changing sales volume is due. The difference in revenue arises between two time periods.

If the sales volume changes and the sales price is retained , increases in sales (apart from structural effects ) are solely due to changes in volume. If the quantity remains unchanged and the sales price varies, one speaks of the sales price effect .

calculation

  • Selling_price_period1 = 30 €; Quantity_period1 = 2
  • Sales_price_period2 = 30 €; Quantity_period2 = 4

If you compare the two revenues , the change in volume is the cause. ($ 30 × 4) - ($ 30 × 2) = $ 60. The change in sales (amounting to € 60) was brought about by doubling the amount (sales volume).

Basically, the volume effect is determined using the following formula:

  • Quantity effect = sales price_period1 × (quantity_period2 - quantity_period1)

The use of a formula is indispensable because when analyzing thousands of products / articles / sales units, it helps to find a quick solution with the help of a spreadsheet program . The calculation formula is used for each article / product, since an application for all articles only shows the weighted average price.

scope of application

The volume effect is increasingly being calculated to control sales activities in order to make the cause of changes in revenue or the delimitation of volume and sales price effects transparent. The investigation of revenue variances is therefore a controlling instrument . Here, the focus can also be on deviations between planned and actual revenue. In addition, the analysis is not only located on the sales side - purchase quantities and prices are also considered here.

Bibliography

  • Hahn, Dietger (1994): Controlling Concepts , Wiesbaden 1994.
  • Preißner, Andreas (2005): Practical Knowledge Controlling , Munich-Vienna 2005 4 .
  • Schröder, Ernst (2003): Modernes Unternehmens-Controlling , Ludwigshafen (Rhein) 2003 8 .

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