The Costing of Inventories at Standard Cost for External Financial

question 133

Multiple Choice

The costing of inventories at standard cost for external financial statement reporting purposes is

• A) not permitted.
• B) preferable to reporting at actual costs.
• C) in accordance with generally accepted accounting principles if significant differences exist between actual and standard costs.
• D) in accordance with generally accepted accounting principles if significant differences do not exist between actual and standard costs.