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Could you please advise which variances are valued at contribution or profit? I have example where sales price variance was valuated at std profit, which seems a bit odd, hence are looking for a difference between std price vs actual. Perhaps I am missing something. many thanks in advance Anna
The sales price variance is never calculated at std profit (or contribution).
It is the same volume variance that is based on std profit or contribution (depending on whether it is absorption or marginal costing).
If the question is either a past exam question or is from the BPP Revision Kit, then say which the question is and I will explain your misunderstanding.
(I assume that you have watched our free lectures on variances? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.)
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