Sales variances Flashcards
1
Q
What is the overall sales variance?
A
It is the difference between the standard sales revenue and actual sales revenue
2
Q
Overall sales variance =
A
(standard quantity x standard price) -
actual quantity x actual price
3
Q
What is the sales price sub-variance caused by?
A
It is caused by the actual selling price paid by customers being different from the budgeted selling price
4
Q
Sales price sub-variance -
A
Actual quantity x
standard selling price - actual selling price
5
Q
What is the sales volume sub-variance caused by?
A
It is caused by the actual quantity of goods sold being different from the budgeted figure
6
Q
Sales volume sub-variance =
A
Standard price x (standard quantity - actual quantity)
