Question

when would a sales price variance be listed as unfavorable?multiple choicewhen the actual sales volume is less than the budgeted sales volume.when the actual sales price is less than the standard sales price.when the actual sales price is greater than the standard sales price.when the actual sales price is equal to the standard sales price.

Answer 1

A sales price variance would be listed as unfavorable when the actual sales price is less than the standard sales price. (option b)

Step-by-step explanation:

A sales price variance would be listed as unfavorable when the actual sales price is less than the standard sales price.

In cost accounting, a sales price variance is used to analyze the difference between the actual selling price and the standard selling price. This variance reflects the impact of price changes on the overall profitability of the sales.

For example, if a company sets a standard selling price of $10 per unit, but the actual selling price is $8 per unit, the sales price variance would be unfavorable because the company is selling its products at a lower price than anticipated.