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SALES REVENUE VARIANCE (SRV)
The word 'Sales Variance' is indicated by the expression 'operating profit variance due to sales' by ICMA. It is described as 'the difference between the budgeted operating profit and the margin between the actual sales and the standard cost of those sales'. This variance is subcategorized into - i) Sales price variance and ii) Sales volume variance
i) Sales price variance (SPV): It is the variation between actual selling price and standard selling price.
SPV = Actual quantity (Actual selling price - Standard selling price)
ii) Selling Volume Variance (SVV):
It is the variation between the actual no. of units sold and the planned sale of units.
SVV = Standard selling price (Actual quantity - Standard quantity)
XYZ Corporation recieves $100,000 from investors for issuing them shares of its stock. XYZ's journal entry to record this transaction would include a a debit to investment b
standard hours = 5000 standard wages = Rs.3/hr actual hours worked = 5600 hrs actual wages paid = 17920
DEFINATION
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