Which of the Following Statements Is(are) True

question 31

Multiple Choice

Which of the following statements is(are) true?
(A) If variances are prorated at the end of the accounting period, an unfavorable direct materials price variance will, when prorated, increase the value of the Finished Goods Inventory.
(B) Insignificant variances are not generally prorated at the end of the accounting period and are closed to the Cost of Goods Sold.

• A) Only A is true.
• B) Only B is true.
• C) Both of these are true.
• D) Neither of these is true.

Assess the legal precedence and interpretative shifts concerning liberty of contract and labor rights.

Understand the concept and application of average and marginal product in economics.

Distinguish between short-run and long-run periods in economics and understand the implications for resource variability.

Evaluate the impact of changing inputs on total, average, and marginal products.

---

Definitions:

Interim Financial Statements

Financial reports covering a period of less than a full fiscal year, often quarterly.

Full Disclosure

A principle requiring that all material facts and information related to financial transactions be disclosed in financial statements.

Conservatism Principle

An accounting principle that advises reporting expenses and liabilities as soon as possible, but revenue only when it is ensured.

Gross Profit Method

An inventory valuation method used to estimate the cost of goods sold and ending inventory levels by applying a gross profit margin to sales.