Revenue Variances Can Be Broken Down Into

question 72

Multiple Choice

Revenue variances can be broken down into:

• A) sales price variance and sales efficiency variance
• B) sales price variance and sales volume variance
• C) sales spending variance and sales volume variance
• D) sales spending variance and sales efficiency variance

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Definitions:

Business Entity Principle

The accounting concept that separates the transactions of a business from those of its owners or other businesses.

Operating

Pertaining to the core business functions and activities of an organization that contribute to the production of goods or services.

General Principles

Broad and fundamental guidelines or rules that form the basis for a field of study or profession.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, notably in the United States.