[amp_mcq option1=”profit variance” option2=”investment variance” option3=”cost variance” option4=”selling price variance” correct=”option4″]
The correct answer is: D. selling price variance.
Selling price variance is the difference between the actual selling price and the budgeted selling price, multiplied by the actual number of units sold. It is a measure of how well a company is able to control its selling prices.
Profit variance is the difference between the actual profit and the budgeted profit. It is a measure of how well a company is able to control its costs and revenues.
Investment variance is the difference between the actual return on investment and the budgeted return on investment. It is a measure of how well a company is able to use its assets to generate profits.
Cost variance is the difference between the actual costs and the budgeted costs. It is a measure of how well a company is able to control its costs.