Which of the following statements is false? * The quantity factor refers to the change in the number of units sold assuming there has been no change in the selling or cost prices. O The net gross profit variance can be computed by adding the sales price variance and the cost price variance. O The price factor refers to the change in selling or cost prices assuming there has been no change in units sold. The price-volume factor refers to the sales or cost of sales variances due to the combined effects of the differences in prices and units sold

Which of the following statements is false? * The quantity factor refers to the change in the number of units sold assuming there has been no change in the selling or cost prices. O The net gross profit variance can be computed by adding the sales price variance and the cost price variance. O The price factor refers to the change in selling or cost prices assuming there has been no change in units sold. The price-volume factor refers to the sales or cost of sales variances due to the combined effects of the differences in prices and units sold

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 6MC: What are some possible reasons for a material price variance? A. substandard material B. labor rate...

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Which of the following statements is false? a. The price factor refers to the change in selling or cost prices assuming there has been no change in units sold. b. The net gross profit variance can be computed by adding the sales price variance and the cost price variance. c. The price-volume factor refers to the sales or cost of sales variances due to the combined effects of the differences in prices and units sold d. The quantity factor refers to the change in the number of units sold assuming there has been no change in the selling or cost prices.
Which of the following statements is false? a. The sum of the cost price variance and cost volume variance is equal to the cost of sales variance. b. The sum of sale mix variance and net gross profit volume variance is equal to the final sales volume variance c. The sum of the price factor and price-quantity factor is equal to the sales price variance. d. The sum of the sales price variance and sales volume variance is equal to the sales variance. e. The sum of the cost factor and price-quantity factor is equal to the cost price variance.
When selling prices and inventory costs are stable, a decrease in units sold would result to _sales volume variance and cost volume variance. A. favorable; favorable C. unfavorable; favorable B. unfavorable; unfavorable D. favorable; unfavorable
Gross profit variance analysis can be used to study the effect of: a. Changes in volume of goods sold on a company's profitability. b. Changes in cost of goods sold on a company's profitability. c. Changes in product sales mix on a company's profitability. d. All of the choices. e. Changes in selling prices on a company's profitability.
1. Explain the total sales volume variance for a period. How can this total variance be decomposed?2. Explain the meaning of the joint price-quantity variance.
Gross profit variance analysis can be used to study the effect of: a. Changes in cost of goods sold on a company's profitability. b. Changes in selling prices on a company's profitability. c. Changes in volume of goods sold on a company's profitability. d. All of the choices. Changes in product sales mix on a company's profitability.
Which of the following statements is incorrect? a. Sales volume variance is the amount by which sales would have varied from the base sales if only the sales volume had changed. b. Sales price variance measures the impact on the firm’s gross profit of changes in the unit selling price. c. Cost volume variance is the amount by which cost of sales would have varied from the base cost of sales if only the units produced had changed. d. Cost price variance measures the impact on the firm’s gross profit of changes in the unit cost price or cost of sales.
Gross profit variance analysis can be used to study the effect of: " Changes in cost of goods sold on a company's profitability. O Changes in product sales mix on a company's profitability. Changes in selling prices on a company's profitability. O All of the choices. O Changes in volume of goods sold on a company's profitability.
Which of the following statements is false? a. The sum of the sales volume variance and cost volume variance should be equal to the sum of the sales mix variance and final sales volume variance in a 4-way variance analysis. b. Gross profit variance analysis can be used to assess the effectiveness of the company’s purchasing policies, pricing and mark-up policies. c. There will be a unfavorable sales price variance is the actual sales price is lower than the base sales price. d. There will be a unfavorable cost volume variance if the actual sales volume is less than the base sales volume.
A.) Sales Price Variance B.) Cost Price Variance C.) Quantity Variance D.) Total Gross Profit Variance E.) Sales Mix Variance F.) Final Sales Volume Variance
You are required to calculate:i. The sales price variance. ii. The sales volume profit variance. iii. The sales mix variance profit. iv. The sales quantity profit volume variance.
A.) Sales Price Variance B.) Sales Volume Variance C.) Sales Variance D.) Cost Price Variance E.) Cost Volume Variance F.) Total Gross Profit Variance G.) Price Variance H.) Price-Quantity Variance I.) Cost Variance J.) Cost-Quantity Variance