The sales price variance is the difference between the actual sales revenues and the:
A) budgeted selling price multiplied by the budgeted number of units sold.
B) budgeted selling price multiplied by the actual number of units sold.
C) actual selling price multiplied by the budgeted number of units sold.
D) actual selling price multiplied by the actual number of units solD.
The sales price variance is derived from the difference between the actual revenue and budgeted selling price multiplied by the actual number of units solD.

Question

Quizplus · Accepted Answer

The sales price variance measures the impact of selling the actual number of units at the budgeted selling price, and is calculated as the difference between actual sales revenue and budgeted sales revenue (budgeted selling price multiplied by actual number of units sold). Therefore, option B - budgeted selling price multiplied by actual number of units sold - is the correct choice.

The Sales Price Variance Is the Difference Between the Actual