Which of the Following Is Not a Typical Step in Variance

question 5

Multiple Choice

Which of the following is not a typical step in variance analysis?

• A) Calculate variances
• B) Identify reasons for variances
• C) Report variances in financial statements
• D) Draw conclusions and take action

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Definitions:

Merchandise

Goods bought and sold by retailers.

Cash Collections

The process of gathering monies that are owed to a business by its customers or clients.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, prior to any purchases or production during the period.

Ending Inventory

The value of goods available for sale at the end of an accounting period after goods sold are subtracted.