Economics · Variance Analysis
How is the Sales Price Variance calculated in management accounting?
- 1(Actual Contribution - Budgeted Contribution) × Industry Volume
- 2(Actual Units Sold - Budgeted Units) × Budgeted Price
- 3(Actual Selling Price - Budgeted Selling Price) × Actual Units Sold✓
- 4(Budgeted Selling Price - Actual Selling Price) × Budgeted Units
Correct answer
(Actual Selling Price - Budgeted Selling Price) × Actual Units Sold
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