Sales revenue variance (srv), Cost Accounting

Assignment Help:

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)


Related Discussions:- Sales revenue variance (srv)

Usefulness of variance analysis, Usefulness of Variance Analysis Caref...

Usefulness of Variance Analysis Carefully note that while prices are being charged to production, it can be done at the actual or standard price. For purposes of making varian

Mamufactuaring account, for the year ended31st dec 2008manufacturing accoun...

for the year ended31st dec 2008manufacturing accountshowing costof row material,manufacturing expenses and the cost of goods manufactured& tradind account where stock of row mater

Calculate the re-negotiate the part-time trainers cost, a.    If you could ...

a.    If you could pick a single source of cash for your business, what would it be? Why? b.    How can a business earn large profits but have a small balance in Retained Earnin

Estimate the growth rate of stock, Estimate the Growth rate of stock ...

Estimate the Growth rate of stock Data stock price = 53 rate of return= 12% expected dividend = 3.15 Formula : Expected return  = (dividend paid + capital

four decisions for which abc information is useful, What are the key reaso...

What are the key reasons for product cost differences among traditional costing system and ABC systems? Explain four decisions for which ABC information is useful?

Administration costs budget, Administration Costs Budget This represe...

Administration Costs Budget This represents the costs of all administration expenses. Every department or budget centre will be responsible for the preparation of its own bud

Determine the price of the bond , Andrew Industries is contemplating issuin...

Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7% (annual coupon payments) and a face value of $1000. Andrew believes it can get a rating of A from

Accelerated cost recovery system - acrs, ACRS is a system of depreciation s...

ACRS is a system of depreciation started by the Economic Recovery Tax Act of 1981. ACRS depreciation relies on recovery periods in spite of useful life. These periods were preset b

Cost estimation, Cost Estimation  Cost estimation may be defined with...

Cost Estimation  Cost estimation may be defined with 'a study that attempts to predict among costs and the activity level or cost driver that causes those costs. In practical

Calculate the amounts that will show in the statement, MX obtains 80% of th...

MX obtains 80% of the 1 million issued $1 ordinary share capital of FZ on 1 May 2009 for $1,750,000 when FZ's reserved earnings were $920,000. The carrying worth was considered

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd