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)

Budgetary planning and control, Budgetary Planning and Control Budgeti...

Budgetary Planning and Control Budgeting refers to the process of quantifying the plans of an organization such as to enable it get its objectives in the defined duration.  Th

Overhead cost, what is overhead cost classfication of cost overhead

what is overhead cost classfication of cost overhead

Calculate the amount of gross profit, Samuel Construction Company engaged i...

Samuel Construction Company engaged in a contract to construct a building on 1 July 2011 with completion of the contract by the 30 June 2014.  The contract price amounted to a tota

Job Order Costing, Bedovin Company manufactures office tables and chairs us...

Bedovin Company manufactures office tables and chairs using the job order cost system

Compute the cost per unit, Fosson Furniture uses a process cost system to a...

Fosson Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units (100% complete as to material, 55% complete as to labor)

What is cmmi, Capability Maturity Model Integration (CMMI) is a process dev...

Capability Maturity Model Integration (CMMI) is a process development approach that gives organizations with the essential elements of effective processes. It can be used to gui

Advantages of cost accounting, ADVANTAGES OF COST ACCOUNTING 1.        ...

ADVANTAGES OF COST ACCOUNTING 1.         It helps in efficient decision making. 2.         It assists in cost drop. 3.         It is useful in obsession of selling price

Cost classification, #question.discuss the importance of cost classificatio...

#question.discuss the importance of cost classification to a business organisation?

Effects of increasing fixed cost, Jones Company operates within a monopolis...

Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q

Draw a payoff diagram, Currently the stock of Backstreet Toys (BT) is selli...

Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy

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