The revenue sales-volume variance is
A) The sum of the individual products' revenue sales volume variances (=budgeted selling price times the difference between the actual and budgeted sales)
B) Budgeted unit sales times actual units sales divided by budgeted unit sales
C) Actual unit sales times budgeted unit sales divided by budgeted selling price per unit
D) The sum of the actual unit sales and the budgeted unit sales divided by the budgeted individual product's selling price

Question

Quizplus · Accepted Answer

The revenue sales-volume variance is calculated as the difference between the actual and budgeted sales volumes, multiplied by the budgeted selling price. This measures the impact of the difference in the quantity sold from the budgeted quantity on revenue. Option A accurately describes this calculation.

The Revenue Sales-Volume Variance Is