When Would a Sales Price Variance Be Listed as Unfavorable

question 75

Multiple Choice

When would a sales price variance be listed as unfavorable?

• A) When the actual sales price is less than the standard sales price.
• B) When the actual sales price is equal to the standard sales price.
• C) When the actual sales price is greater than the standard sales price.
• D) When the actual sales volume is less than the budgeted sales volume.

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Definitions:

Consumer Surplus

The divergence between the price consumers are willing to pay and what they really spend on a good or service.

Floor Price

The minimum price set by regulation, often by the government, below which a commodity cannot legally be sold in the market.

Market Supply

The total amount of a specific good or service that is available to consumers in a market at a given time and price.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.