DEFINITION of '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
BREAKING DOWN '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.

Variance
The spread between numbers in a data set, measuring Variance ... 
Budget Variance
A periodic measure used by governments, corporations or individuals ... 
Unfavorable Variance
An accounting term that describes instances where actual costs ... 
Sales Mix Variance
The difference in the quantity of customer purchases of each ... 
Portfolio Variance
The measurement of how the actual returns of a group of securities ... 
Yield Variance
The difference between actual output and standard output of a ...

Investing
Explaining Variance
Variance is a measurement of the spread between numbers in a data set. 
Investing
Calculating Portfolio Variance
Portfolio variance is a measure of a portfolioâ€™s volatility, and is a function of two variables. 
Trading
Exploring The Exponentially Weighted Moving Average
Learn how to calculate a metric that improves on simple variance. 
Investing
Using Historical Volatility To Gauge Future Risk
Use these calculations to uncover the risk involved in your investments. 
Personal Finance
How Budgeting Works For Companies
Learn how to break down and understand a corporate budget. 
Investing
Computing Historical Volatility in Excel
We examine how annualized historical volatility is computed from daily log returns, variance and standard deviation. 
Small Business
Understanding Competitive Pricing
Competitive pricing is the practice of setting prices for products or services based on what the competition charges. 
Investing
5 Retailers Set to Close More Stores in 2016 (FINL, GPS)
Discover retail stores that have already announced plans to close stores in 2016. Some expect a new economic downturn, which may lead more stores to close. 
Personal Finance
Winning Retailers Amid Sales Slump
Declining department store retail sales and the exceptions to the rule after the end of the Great Recession.

What is price variance in cost accounting?
Understand what price variance is in relation to cost accounting. Learn the most common way price variance arises and how ... Read Answer >> 
Is variance good or bad for stock investors?
Learn how high variance stocks are good for some investors and how diversified portfolios can reduce variance without compromising ... Read Answer >> 
How is an unfavorable variance discovered?
Learn how unfavorable variance is discovered through defining budget numbers, such as standard rates for labor and materials, ... Read Answer >> 
What is the difference between standard deviation and variance?
Understand the difference between standard deviation and variance; learn how each is calculated and how these concepts are ... Read Answer >> 
How much variance should an investor have in an indexed fund?
Learn more about the significance of variance in index funds, its value as a measure of volatility and other common analytical ... Read Answer >> 
How can I measure portfolio variance?
Find out more about portfolio variance, the formula to calculate portfolio variance and how to calculate the variance of ... Read Answer >>