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Sales Price Variance

What is 'Sales Price Variance'

The difference between the amount of money a business expects to sell its products or services for and the amount of money it actually sells its products or services for. Sales price variance means that a business will be more or less profitable than it anticipates over a given time period. As a result, sales price variances are said to be either "favorable" or "unfavorable."


Sale price variance = (actual selling price - anticipated price) * # units sold

Explaining 'Sales Price Variance'

Let's say a clothing store has 50 shirts that it expects to sell for $20 each, which would bring in $1,000. Unfortunately, the shirts are sitting on the shelves and are not selling, so the store has to discount them to $15. It does sell all 50 shirts at the $15 price, bringing in $750. The store's sales price variance is $1,000 minus $750, or $250, and the store will earn less profit than it expected to.


Further Reading


Revisions in repeat‐sales price indexes: here today, gone tomorrow?
onlinelibrary.wiley.com [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

A flexible Fourier approach to repeat sales price indexesA flexible Fourier approach to repeat sales price indexes
onlinelibrary.wiley.com [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

The capital asset pricing model (CAPM), short-sale restrictions and related issuesThe capital asset pricing model (CAPM), short-sale restrictions and related issues
www.jstor.org [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

Short holds, the distributions of first and second sales, and bias in the repeat-sales price indexShort holds, the distributions of first and second sales, and bias in the repeat-sales price index
books.google.com [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

How is macro news transmitted to exchange rates?How is macro news transmitted to exchange rates?
www.sciencedirect.com [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

List prices, sale prices and marketing time: an application to US housing marketsList prices, sale prices and marketing time: an application to US housing markets
onlinelibrary.wiley.com [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

Accounting for taste: Art and the financial markets over three centuriesAccounting for taste: Art and the financial markets over three centuries
www.jstor.org [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

List price and sales prices of residential properties during booms and bustsList price and sales prices of residential properties during booms and busts
www.sciencedirect.com [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

Contract expiration and sales priceContract expiration and sales price
link.springer.com [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …

A mean-variance synthesis of corporate financial theoryA mean-variance synthesis of corporate financial theory
www.jstor.org [PDF]
… the first to propose that prices may contain a drift term that would allow the second sale prices to drift … Revisions in Repeat-Sales Price Indexes: Here Today, Gone Tomorrow … Therefore, the large constant terms in Table 1 suggest that the weighted repeat sales (WRS) model is …


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