Asked by Chelsea Garcia-Perez on May 10, 2024

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Subtracting actual revenues from planned revenues provides the revenue price variance.

Revenue Price Variance

The difference between the planned and actual unit sales price multiplied by the actual units sold.

Actual Revenues

The real amount of money received by a company from its business activities, without adjustments or estimations, in a specific period.

Planned Revenues

Forecasted income that a business expects to receive from its operations or activities within a specific period.

  • Realize the determination and interpretation of variances, both favorable and unfavorable.
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NK
nishika khubchandaniMay 11, 2024
Final Answer :
False
Explanation :
Subtracting actual revenues from planned revenues provides the revenue variance, not specifically the revenue price variance. Revenue price variance is calculated by taking the difference between the actual price and the budgeted price, then multiplying by the actual quantity sold.