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.

---

Definitions:

Earnings per Share

A metric used to determine the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Debt

Money borrowed by one party from another, typically used for personal or business financing, requiring repayment with interest.

Financial Risk

The risk of monetary loss associated with investing in or running a business.

Financial Leverage

The use of borrowed money to increase the potential return of an investment.