Which of the following statements is false? * 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. O There will be a unfavorable cost volume variance if the actual sales volume is less than the base sales volume. O There will be a unfavorable sales price variance is the actual sales price is lower than the base sales price. Gross profit variance analysis can be used to assess the effectiveness of the company's purchasing policies, pricing and mark-up policies.

Which of the following statements is false? * 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. O There will be a unfavorable cost volume variance if the actual sales volume is less than the base sales volume. O There will be a unfavorable sales price variance is the actual sales price is lower than the base sales price. Gross profit variance analysis can be used to assess the effectiveness of the company's purchasing policies, pricing and mark-up policies.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 20Q: In comparing actual sales revenue to flexible budget sales revenue, would it be possible to have a...

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Which statement is true? A. Gross profit (GP) variance analysis, is an essential part of financial statements analysis that is used to evaluate the performance of a firm's departments responsible for the firm's line activities (functions). B. Increases and decreases in sales and cost of sales have direct relationship with increases and decreases in GP. C. If there is a negative sales price variance and there is no cost variance, the gross profit variance will be equal to the sales price variance. D. A zero cost variance indicates that there is no difference between the standard cost prices and actual cost prices. E. none of the above
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