Gross profit variance analysis can be used to study the effect of:  a. Changes in volume of goods sold on a company's profitability. b. Changes in cost of goods sold on a company's profitability. c. Changes in product sales mix on a company's profitability. d. All of the choices. e. Changes in selling prices on a company's profitability.

Q: Sales Price Variance Sales volume variance Sales variance

A: * As per bartleby guideline, if multiple sub parts are there in question then answer first three…

Q: What are the other external factors that affects the variance of a company's gross profit?

A: The difference between sales and the cost of goods sold results in the gross profit. This figure…

Q: Which of the following statements is false? * The quantity factor refers to the change in the number…

A: The difference between the actual cost or price and the budgeted (standard) cost or price is…

Q: “The production-volume variance should always be written off to Cost of Goods Sold.” Do you agree?…

A: Production-Volume Variance:It reports that amount which is result of the multiplication of…

Q: Examine the main reasons why manufacturing companies are more sensitive to material price variances,…

A: (a) The main reasons why manufacturing companies are more sensitive to material price variances, as…

Q: TRUE OR FALSE Production volume variance is adjusted to the cost of goods sold to get the cost of…

A: Production volume variance is the difference between actual and budgeted overhead. Under variable…

Q: Which of the following statements is false? a. The sum of the cost price variance and cost volume…

A: In general terms, Variance refers to the spread between the numbers or the relationship existing. It…

Q: Management accounting uses variance analysis to explain what and why something happened in the cost…

A: In costing, Variances is the difference between the budgeted, planned, actual cost. This variance…

Q: Why do financial managers need to break down the components of the gross profit variances? Why do we…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Required: Prepare a profit variance analysis. (Indicate the effect of each variance by selecting "F"…

A: Manufacturing Variances = Actual cost - Flexible Budget cost Sales Price Variance = Actual Sales -…

Q: Total operating income variance means the difference between the actul operating inccome and the…

A: The first level breakdown of the total operating income variance is the static budget variance for…

Q: 3. What are the selling price variance and sales volume variance? 4. What are the sales mix variance…

A: Selling Price Variance = Actual Quantity x (Actual Price - Standard price) Sales Volume Variance =…

Q: Explain why a favorable sales-quantity variance occurs.

A: Explain the reason for the occurrence of favorable sales quantity variance:When actual sales exceed…

Q: Which of the following statements is false? * . The sum of the sales price variance and sales volume…

A: Statement 1 is true. Sales value variance is equal to sum of Sales price variance and Sales volume…

Q: Why should a production-volume variance (PVV) that is material be prorated among work-in-process,…

A: Approximating the allocation of fixed costs based on actual output and actual costs so it is not…

Q: Show how managers can gain insight into the causes of a sales-volume variance by subdividing the…

A: Sales Volume Variance:The sales volume variance is the difference of budgeted amount and the actual…

Q: Explain the total sales volume variance for a period.  How can this total variance be decomposed?

A:

Q: What is the sales price variance?

A: Sales Price Variance is the variance in total revenue due to different selling price from the…

Q: Gross Profit Variance

A: The difference between selling price and cost of goods sold per unit gives the gross profit per…

Q: Which of the following underlying assumptions form(s) the basis for gross profit variance analysis?…

A: Gross profit variance analysis is defined as the one which analyse the profit variance that comprise…

Q: What are the relationships among a selling price variance, a sales mix variance, a sales…

A: Definition: Variance: Variance refers to the different levels in the actual cost incurred and…

Q: How much is the sales price-volume variance?

A: Changes in sales price from budget price = P100 Given, Sales quantity variance which is unfavorable…

Q: Cite a specific example of the application of gross profit variance analysis. How will it help the…

A: Variance analysis for any variable enables the entity to break down the variable and establish…

Q: volume variance

A: Sales volume variance measures the difference between the actual units sold and the budgeted units…

Q: Which of the following about gross profit variance analysis is most correct? * Gross profit variance…

A: A gross profit analysis involves comparing the gross profit for the period being reviewed to either…

Q: Why are product cost variances (DM, DL, MOH) broken down and separated into price & quantity…

A: Direct Material Variance Materials Price Variance- A variance which shows the difference between…

Q: In gross profit analysis, a favorable cost of sales variance that includes an unfavorable cost…

A: A favorable variance happens when the cost to produce is less than the budgeted cost. It means a…

Q: How can the sales-quantity variance be decomposed further?

A: Sales quantity variance identifies the difference between budgeted contribution margin based on…

Q: Which of the following statements is false? a. The sum of the sales volume variance and cost volume…

A: Statement (a) is false among all four because- The sum of sales quantity variance and sales mix…

Q: QUESTION 1 Which one of these statements is FALSE about variance analysis? O In variance analysis,…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: The Flexible-Budget Variance is the sum of   a. The static-budget variance and the sales-volume…

A: Flexible-Budget Variance = Actual results - Flexible results

Q: Determine the following: Sales price variance Sales volume variance Sales variance Cost price…

A: Standard costing is the costing method, where standard or expected costs are used in calculating…

Q: The variance that arises solely because the actual units sold differs from the budgeted units to be…

A: The variance that arises solely because the actual units sold differ from the budgeted units to be…

Q: Which of the following statements is false?   a. The price factor refers to the change in selling…

A: Gross profit variance measures the ability of a business to generate a profit from its sales and…

Q: The sales price factor shows a variance of

A: Sales price variance is the variance how much the deviation has been made during the year. It means…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: Sales price variance is the difference between the actual and standard/Budgeted selling price of…

Q: The sales mix factor shows a variance of

A: Variance measures the variation which has been occurred during the period when the current results…

Q: Which of the following is true?       Multiple Choice   If a company has an unfavorable spending…

A: The variance is the difference between the actual data and standard output of the production.

Q: To reconcile budgeted profit to actual profit under marginal costing, which variances must be…

A: Marginal Costing is a method of costing, where the marginal cost, the variable cost is charged to…

Q: 2. Explain the arguments for the use of traditional absorption costing rather   than marginal…

A: 1.  Variance analysis can be summarized as an analysis of the difference between planned and actual…

Q: Help question 26

A: False. Price variance is the difference between the Standard price of the input and actual price of…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: The difference between the actual cost or price and the budgeted (standard) cost or price is…

Q: You are required to calculate: i. The sales price variance.  ii. The sales volume profit variance.…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Is it possible for a retail store such as Apple to use variances in analyzing its operating…

A: Variance analysis is usually done to find the difference between actual performance and budgeted…

Q: Which of the following underlying assumptions form(s) the basis for gross profit variance analysis?…

A: Gross profit is the difference between the sales revenue and cost of goods sold. Gross profit…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.