The Sales Price Variance Is the Difference Between the Actual

question 110

Multiple Choice

The sales price variance is the difference between the actual sales revenues and the:

• A) budgeted selling price multiplied by the budgeted number of units sold.
• B) budgeted selling price multiplied by the actual number of units sold.
• C) actual selling price multiplied by the budgeted number of units sold.
• D) actual selling price multiplied by the actual number of units solD.
• The sales price variance is derived from the difference between the actual revenue and budgeted selling price multiplied by the actual number of units solD.

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Definitions:

Casualty Insurance

Insurance coverage against loss or damage to property or individuals due to an accident, theft, or other unforeseen events.

Insurance Contract

A legally binding agreement between an insurer and an insured, in which the insurer agrees to compensate for specific losses in exchange for a premium.

Breach of Contract

occurs when a party fails to fulfill their obligations under a contract, either by not performing as promised, by interfering with another party's performance, or by repudiating the contract altogether.

Incontestability Clause

A provision in insurance policies that prevents the insurer from disputing the policy's validity after it has been in force for a specific period, usually two years, except under certain circumstances.