For Interim Reporting, Which of the Following Statements Is True

question 47

Multiple Choice

For interim reporting, which of the following statements is true?

• A)​Under a standard cost system, unplanned or unanticipated variances should be deferred at interim reporting dates.
• B)​Under the LIFO method, recognition of layer liquidations, thought to be temporary, are postponed by using replacement cost in the calculation of interim cost of goods sold.
• C)​Under the lower of cost or market determination of ending inventory, a gain may not be recognized in an interim period.
• D)​All of these statements are true.

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Definitions:

Memos

Short written communications typically used within an organization to convey messages or information.

Messages

are units of communication that convey information, intentions, or requests from the sender to the receiver.

Transmitted Data

Information that has been sent from one place to another through a digital or analog method.

Nonverbal Symbols

Forms of communication without the use of words, such as gestures, facial expressions, and body language, that convey meanings or messages.