An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate _____________?
Correct answer: C. selling price variance
- A. profit variance
- B. investment variance
- C. selling price variance
- D. cost variance
Explanation
Multiplying the selling-price difference by actual units isolates the effect of the price change, so it measures selling price variance. Profit, investment and general cost variances require other components.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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