The sales price variance can be defined as the difference between:
Understand the Problem
The question asks for the definition of sales price variance and what it is calculated as the difference between. It provides four multiple choice options related to budget and sales revenue.
Answer
D. The actual sales revenue and the sales revenue in the flexed budget.
The final answer is D. The actual sales revenue and the sales revenue in the flexed budget.
Answer for screen readers
The final answer is D. The actual sales revenue and the sales revenue in the flexed budget.
More Information
Sales price variance measures the difference between expected and actual prices, often using the flexed budget to adjust for actual sales volume.
Tips
A common mistake is confusing sales price variance with volume variance, which pertains to differences in quantities sold.
Sources
- Sales Price Variance - Competera - competera.ai
- Selling price variance definition - AccountingTools - accountingtools.com
- Sales Price Variance - Accounting Simplified - accounting-simplified.com
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