The difference between operating profits in the master budget and operating profits in the flexible budget is called a sales price variance.

Question

Quizplus · Accepted Answer

The difference between operating profits in the master budget and operating profits in the flexible budget is called a flexible budget variance. The sales price variance is a component of the flexible budget variance and measures the impact of actual sales prices being different from the budgeted sales prices. It is a sales volume activity variance.

The Difference Between Operating Profits in the Master Budget and Operating