Sales variance and operating statement.

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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February 9, 2021 at 7:06 am #609757
Mohapy
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I would like to know why sales price variance is taken to cost variances and not to budgeted profit during the reconciliation of budgeted and actual profit?
February 9, 2021 at 8:46 am #609788
John Moffat
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The sales price variance is not a cost variance!!

If the actual selling price is different from the budgeted / standard selling price, then the actual profit will be different from the budget profit.
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