Which Statement Is True Concerning a Standard Costing System

question 121

Multiple Choice

Which statement is true concerning a standard costing system?

• A) Unfavorable variances are recorded; favorable variances are not recorded in the accounting records.
• B) Only unfavorable variances that are large enough to be investigated under the company's management by exception policy are recorded in the accounting records.
• C) The costs added to the inventory accounts are recorded at standard costs rather than actual costs.
• D) No Work in Process Inventory account is used.

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