What does "sales volume" refer to in a business context?

In a business context, "sales volume" specifically refers to the number of products or services sold over a period of time. This metric provides insight into the performance and demand for a company’s offerings. Understanding sales volume helps businesses make informed decisions regarding inventory management, production levels, and sales strategies.

By focusing on the quantity sold rather than the revenue generated or costs incurred, companies can assess their market presence and customer preferences. Sales volume is often a key indicator of a business's operational efficiency and growth potential. It is distinct from total revenue, which is a monetary measure, and from average selling price, which relates to pricing strategy.