Which Statement Is True Concerning the Variance Accounts in a Standard

question 72

Multiple Choice

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

• A) They cause the general ledger to be out of balance.
• B) They appear on the balance sheet as adjustments to Work in Process Inventory.
• C) They are temporary accounts and are closed before financial statements are prepared.
• D) They have debit balances prior to closing.

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Definitions:

Agoraphobia

An anxiety disorder characterized by intense fear or anxiety of places and situations where escape might be difficult or where help might not be available.

Public Places

Areas that are open and accessible to people, often used for gatherings, transportation, or leisure activities.

Irrational Fear

An exaggerated or unreasonable fear response that does not have a rational basis and is often disproportionate to the actual danger presented.

Phobia

Intense, irrational aversion or dread towards a particular object or situation.