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Commerce · Q513

Costing

Graduate and Post Graduate · Commerce · question 513

Q513

An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate

A.
profit variance
B.
investment variance
C.
cost variance
D.
selling price variance
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate selling price variance. Sales price variance measures the change in a company's total budgeted revenue to the actual revenue earned on a product.