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Business Glossary


Business Definition for: sales price variance
sales price variance

difference between actual selling price per unit and the budgeted selling price per unit, multiplied by the actual number of units sold.

Sales Price Variance = (Actual Price-Budgeted Price) ×Actual Sales

If the actual price is greater than the budgeted price, a variance is favorable; otherwise, it is unfavorable.

See also sales volume variance
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