In a Standard Cost System,a Favorable Variance Will Appear As

question 122

Multiple Choice

In a standard cost system,a favorable variance will appear as:

• A)a credit entry.
• B)a debit entry.
• C)either a debit or a credit entry.
• D)variances do not affect journal entries.

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Definitions:

Unit-Level Activity

Activities that vary directly with the production volume such as the use of raw materials or energy consumed during manufacturing.

Batch-Level Activity

Activities and costs incurred for a batch of products, rather than for each individual unit or the entire production process.

Product-Level Activity

Activities that are directly associated with a specific product, leading to costs that can be directly attributed to the production of that product.

Facility-Level Activity

Activities that support the entire organization and cannot be traced to individual products or services, such as building security and property taxes.