Percentage Sales Variance v3

The Percent Variance in Sales calculator computes the percentage of the difference in sales in two periods.  

INSTRUCTIONS: Choose your preferred currency units and enter the following:

• (LS) Last Period Sales Total 
• (TS) This Period Sales Total

% Variance in Sales (PVS): The calculator returns the sales variance as a percent change.

The Math / Science

In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues. This equation shows the percentage of variance in relation to sales..  For example, if the sales last year (LS) was $100 and the sales this year (TS) was $120, the Percent Variance in Sales would be 20% as follows:

`PVS = (TS) /(LS)  - 1` = 20%

`PVS = ($120) / ($100)  - 1` = 20%

Using this formula, all increases in sales are positive percentages, and all decreases in sales are negative percentages.

Note: this is algebraically equivalent to the Percent Variance in Sales formula :

`PVS =(TS - LS) /(LS)` 

where:

• PVS = Percent Sales Variance
• TS = Total Sales for THIS period
• LS = Total Sales for LAST period

Hospitality Calculators

• Average Cost per Room - Average expense per room for a period of time.
• Average Daily Rate - Average daily income rate for rooms rented
• Average Sales per Guest Forecast - Forecast based on total forecast and guest count forecast.
• Break-Even Point in Guests Served - Computes the number of guests needed to break even based on fixed costs and margin per guest.
• Contribution Margin per Guest - Computes the margin per guest based on selling price per guest and variable cost per guest.
• Contribution Marge Percent - Computes the percent of contribution margin based on the Selling Price percent and the Variable Cost percent.
• Cost of Food Consumed - Computes the cost of food based on inventory change and purchases.
• Estimated Room Expenses -  Computes the estimated annual expense of rooms based on the expense per room and number of rooms.
• Food Cost Percent for a Restaurant - Computes the percent of costs associated with food for a restaurant.
• Food Selling Price - Computes selling price based on Item Food Cost and percent allocated to food commodity.
• GOPPAR - Gross Operating Profit Per Available Room - Computes the profit based on the gross profit and the total rooms available.
• Guest Count Forecast - Guest count forecast based on last year's and an expected increase.
• Percent Sales Variance - Computes the percentage of the difference in sales in two periods. 

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.