At the End of the Accounting Period,all Variances Are Closed

question 46

Multiple Choice

At the end of the accounting period,all variances are closed to the ________ account.

• A)Work in Process
• B)Finished Goods
• C)Cost of Goods Manufactured
• D)Cost of Goods Sold

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Definitions:

FIFO

First-In, First-Out, a method used in inventory management where the first items placed in inventory are the first to be used or sold.

Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale during the period.

Perpetual Inventory System

Definition: An accounting system that continuously updates inventory records for each purchase and sale transaction.

LIFO

Last In, First Out, an accounting method where the most recently produced items are recorded as sold first.