Favorable Variances Are Contra Expenses and Therefore Decrease Cost of Goods

question 145

True/False

Favorable variances are contra expenses and therefore decrease Cost of Goods Sold.

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Definitions:

Total Assets

Total assets represent the sum of all resources owned by a company, valued in monetary terms, and listed on its balance sheet, including both current and non-current assets.

Liabilities

Financial obligations that a company owes to outside parties, including loans, accounts payable, mortgages, and other debts.

Retained Earnings

The portion of a company's profits that is saved or retained rather than distributed to shareholders as dividends.

Balance Sheet

An overview report capturing a business's financial condition, specifying its holdings, liabilities, and shareholder equity at a specific instant.