Which of the following statements is false? a. The sum of the cost price variance and cost volume variance is equal to the cost of sales variance. b. The sum of sale mix variance and net gross profit volume variance is equal to the final sales volume variance c. The sum of the price factor and price-quantity factor is equal to the sales price variance. d. The sum of the sales price variance and sales volume variance is equal to the sales variance. e. The sum of the cost factor and price-quantity factor is equal to the cost price variance.

Q: The Purchasing Agent in a firm would be most likely to be held responsible for which of the…

A: Variances analysis involves determining of deviations if any by comparing the actual results with…

Q: Which of the following is a limitation of the gross profit variance analysis? a. The level of…

A: Gross profit variance analysis refers to the analysis which dealt with how to analyse the profit…

Q: Define sales volume variance.

A: Sales volume variance (also known as sales quantity variance) occurs when the actual quantity of…

Q: Which of the following variances can be derived when the difference of the last year's selling price…

A: Answer - (B) Sales Volume Variance can be derived when the difference of the last year's selling…

Q: What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your…

A: Formula: Direct Labor Rate Variance= (SR-AR)AT Direct Labor Time Variance= (ST-AT)SR Direct Labor…

Q: If raw materials are carried in the raw materials inventory at standard cost, then it is reasonable…

A: 1 Standard data is calculated by considering budgeted data and using actual data. 2…

Q: Which of the following statements is false? * The quantity factor refers to the change in the number…

A: The difference between the actual cost or price and the budgeted (standard) cost or price is…

Q: In regard to the Sales-Volume Variance, which of the following statements is false. A) The…

A: Flexible budget variance is the difference between an actual result and a flexible-budget amount.…

Q: How can the concept of a composite unit be used to explain why an unfavorable total sales-mix…

A: Sales mix variance: The difference between a budgeted and actual sales mix. Sales mix is a…

Q: Determine the following: Sales price variance Sales volume variance Sales variance

A: Sales price variance = (Unit selling price 2021 - Unit selling price 2020)*Units sold 2021

Q: Why do financial managers need to break down the components of the gross profit variances? Why do we…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Which of the following statements is false? * . The sum of the sales price variance and sales volume…

A: Statement 1 is true. Sales value variance is equal to sum of Sales price variance and Sales volume…

Q: 1 F or 11,111 U Total gross profit variance = Price varianc

A: Price variance refers to the actual unit cost of an item bought deducted from its standard cost and…

Q: What is the sales price variance?

A: Sales Price Variance is the variance in total revenue due to different selling price from the…

Q: If there were no variances, the company's absorption-costing net income would be

A: Ans. P 325,000 25000 units @ P 30 = P750000 Less. Cost of Sale   = P 425000 Net income = P 325,000…

Q: What is the Sales Volume Variance under 4-way analysis?*

A: Any of the variances can be studied in four ways Fixed price/spending variance Variable…

Q: Gross Profit Variance

A: The difference between selling price and cost of goods sold per unit gives the gross profit per…

Q: Which of the following statements is false? * The sum of the sales volume variance and cost volume…

A: Sales volume variance Analysis Sales volume variance analysis which can be determine to know the…

Q: Which of the following underlying assumptions form(s) the basis for gross profit variance analysis?…

A: Gross profit variance analysis is defined as the one which analyse the profit variance that comprise…

Q: Total gross profit variance = Price variance =  Price-Quantity variance =  Cost variance =…

A: Variance is the deviation between actual figures and budgeted figures. If the deviation or change is…

Q: What are the relationships among a selling price variance, a sales mix variance, a sales…

A: Definition: Variance: Variance refers to the different levels in the actual cost incurred and…

Q: nder 4-way analysis?

A: Sales price variance refers to the concept which measures the gap between the estimated price a…

Q: How much is the sales price-volume variance?

A: Changes in sales price from budget price = P100 Given, Sales quantity variance which is unfavorable…

Q: Compute for the following: Sales price variance Cost price variance Quantity variance Format:…

A: Variance is calculated for comparing results either between two years or between budget and actuals.…

Q: me Variance F.) Total Gross Profit Variance G.) Price Variance H.) Price-Quantity Variance I.) Cost…

A:

Q: volume variance

A: Sales volume variance measures the difference between the actual units sold and the budgeted units…

Q: What is the total gross profit variance? * Bulldogs Inc. had determined the following variances:…

A: The gross profit the income by deducting the cost of sales from the amount of total sales. The…

Q: 1. Explain the total sales volume variance for a period. How can this total variance be…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Flexible-budget variance, sales-quantity, market-size, and market-share variance. The actual…

A: Sales Variance:The sales variance is the difference of budgeted amount and the actual amount. The…

Q: TRUE OR FALSE When actual production volume is less than expected volume, the production volume…

A: Fixed factory overhead volume variance = (Budgeted hours  -Standard hours required for actual…

Q: Cost Price Variance E.) Cost Volume Variance F.) Total Gross Profit Variance G.) Price Variance H.)…

A: The calculation of different variances and analysis if favourable or unfavourable are shown…

Q: Sales variance is the difference between sales price and ----------   Labour rate variance Sales…

A: Sales variance =Actual sales - budgeted sales = Actual quantity * actual price - budgeted quantity *…

Q: Gross profit variance analysis can be used to study the effect of:" Changes in cost of goods sold on…

A: Gross profit variance refers to the variance that occurred to the amount of gross profit from the…

Q: Which of the following set of terms describes the same type of variance?       Price variance, rate…

A: The variance is calculated as difference between the actual results and standard output.

Q: Which of the following analysis of variances is true? * A unfavorable sales price variance under the…

A: Cost price variance is the difference between the actual unit cost and the budgeted unit cost,…

Q: Which of the following statements is false? a. The sum of the sales volume variance and cost volume…

A: Statement (a) is false among all four because- The sum of sales quantity variance and sales mix…

Q: Flexible-budget variance, sales-quantity, market-size, and market-share variance. The actual…

A: Sales variance shows the difference between the actual sales and the budgeted sales for the period.…

Q: Although there are many reasons to this concern, one of the general reasons in gross profit variance…

A: A variance is generated when there is a difference between a budgeted value and the actual value…

Q: The sales price factor shows a variance of * D

A: Variance caused by selling price in total sales is known as sales price Variance.   Formula:  Sales…

Q: The Flexible-Budget Variance is the sum of   a. The static-budget variance and the sales-volume…

A: Flexible-Budget Variance = Actual results - Flexible results

Q: Which of the following analysis of variances is true? a. Unfavorable sales volume variance means…

A: Cost price variance is the difference between the actual unit cost and the budgeted unit cost,…

Q: Determine the following: Sales price variance Sales volume variance Sales variance Cost price…

A: Standard costing is the costing method, where standard or expected costs are used in calculating…

Q: Which of the following statements is false?   a. The price factor refers to the change in selling…

A: Gross profit variance measures the ability of a business to generate a profit from its sales and…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: Sales price variance is the difference between the actual and standard/Budgeted selling price of…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: The difference between the actual cost or price and the budgeted (standard) cost or price is…

Q: You are required to calculate: i. The sales price variance.  ii. The sales volume profit variance.…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Which of the following is FALSE regarding variances? O A favorable variance, when it occurred, are…

A: Standard costing refers to the method of costing used to find out the variances. Standard overhead…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.