Asked by
Manav Prasher
on Oct 15, 2024
Verified
The total sales variance can be divided into the sales price variance and the sales volume variance.
Sales Variance
The difference between actual sales and budgeted or forecasted sales.
Sales Price Variance
The difference between the actual sales price of a product and its expected (or standard) sales price.
Sales Volume Variance
The difference between the actual quantity sold and the budgeted quantity sold, multiplied by the standard selling price per unit.
- Discern between advantageous and disadvantageous variances.
Verified Answer
DR
Learning Objectives
- Discern between advantageous and disadvantageous variances.
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