Which one of the following is the result of the [(units sold) × (actual selling price per unit)] − [(units sold) × (budgeted selling price per unit)]:
A) Sales efficiency variance.
B) Sales quantity variance.
C) Selling price variance.
D) Sales mix variance.
E) Sales volume variance.

Question

Quizplus · Accepted Answer

The formula provided [(units sold) × (actual selling price per unit)] − [(units sold) × (budgeted selling price per unit)] is used to calculate the selling price variance. This variance measures the impact of the difference between the budgeted and actual selling price on sales revenue. The other answer choices are different types of sales variances that are calculated using different formulas.

Which One of the Following Is the Result of the [(Units