Which Statement Is True Concerning an Insignificant Material Quantity Variance

question 146

Multiple Choice

Which statement is true concerning an insignificant material quantity variance in a standard costing system?

• A) It is recorded in the accounting records as a credit when the material is ordered.
• B) It is closed to the manufacturing overhead account at the end of the period.
• C) It is recorded at the actual cost of materials used times the standard quantity of materials allowed.
• D) It is closed to the cost of goods sold account at yearend.

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