Which Statement Is True Concerning Insignificant Favorable Variance Accounts in a Standard

question 44

Multiple Choice

Which statement is true concerning insignificant favorable variance accounts in a standard costing system?

• A) They have a debit balance.
• B) They reduce a company's total expenses.
• C) They are closed to Work in Process.
• D) They are recorded with a credit to the related inventory accounts.

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Definitions:

Self-congratulation

The act of praising or expressing pride in oneself for one's achievements or qualities, often without external acknowledgment.

Difficult Assignment

A task or project that is particularly challenging due to its complexity, scope, or the required skill set.

Punishment

A consequence or penalty imposed for unacceptable behavior, meant to discourage that behavior in the future.

Turnover

The rate at which employees leave a company and are replaced by new ones.