How Do You Compare Price & Volume Variance?
Understanding how to make the best purchase for your money is a basic concept but one than many people overlook or don’t understand because they don’t invest the time. The place that most often requires the use of comparing prices with variance in volume is the grocery store but it can be utilized in many places. If something is sold in different amounts, it’s important to understand what you are paying per amount. Look at the total price. The total price is important because that’s how much you have to pay as the bottom line. It doesn’t matter how great a deal is by volume if the total price is too much. Find the unit price. The unit price is usually labeled below an item on the self. The unit price tells the cost per unit. You will have to read the label carefully to find out what the unit is. It may be per quart, pound, ounce or something else. Do the math to find the best price. Usually the lower price by volume is the best price. Make sure the items are compared by the same volume
