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I have a question,
Which of the following variances is/are required in order to reconcile the budgeted profit
for a period with the standard profit on actual sales for the same period?
(1) Sales volume revenue variance
(2) Selling price variance
(3) Sales volume profit variance
(4) Total cost varianceAlso, if a company operates with marginal costing and plans to change to absorbtion costing will the sales volume increase or decrease?
Why are you attempting question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they have answers!
First question: (2) and (4)
Second question: Neither – it will not affect the sales volume.
I really do suggest that you watch my free lectures. They are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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