Volume Variance

[Danny8231]

Okay, need some finance/accounting help. I'm sure this is simple but I can't find a definitive answer anywhere online.

Here's my volume (inventory) data:

Actual volume= 25.0
Forecast volume= .04

How do calculate the percent difference?

Using A/F-1, I'm getting 57663%
Using (F-A)/A I get -99.8%

What am I doing wrong here???

 

[dk]

Hi,

You'd normally assume that the forecast (or budget) is your base, so you'd determine how far off your actual is from your base i.e. (A-F)/F = 6150%. In other words your actual result is 6.15 times higher than what you forecast.

HTH
DK

 

[dk]

Sorry, I interpreted the forecast as 0.4, not 0.04. The variance should be (25-0.04)/0.04 = 62400%