The Two Major Components of the Total Profit Variance Are

question 2

Multiple Choice

The two major components of the total profit variance are:

• A)Sales volume variance and flexible budget variance.
• B)Price variance and quantity variance.
• C)Sales volume variance and sales mix variance.
• D)Flexible budget variance and quantity variance.
• E)None of the above.

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Definitions:

Trade Discount

A reduction in the listed price of goods or services, offered by sellers to buyers in the business-to-business market.

Real Estate Commission

The fee, typically a percentage of the sale price, paid to a real estate agent or broker for their services in selling a property.

Trade Discount

A reduction in the list price granted by a seller to a buyer, often based on the volume of goods purchased or to maintain a long-term sales relationship.

Trade Discount

A reduction from the list price granted by a seller to a buyer based on the volume or quantity purchased or to stimulate sales.