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:

Substitute Check

A digital reproduction of the original paper check that is legally considered the same as the original for clearing and settlement purposes.

Improperly Charged

An instance where an individual or entity is wrongfully or incorrectly subjected to fees, expenses, or accusations.

Legal Rights

Rights bestowed upon individuals by law, including civil liberties and entitlements to certain actions or treatments.

Small Bank

A banking institution with a relatively small amount of assets and operations, typically serving local or specialized markets.