If the Net Variance of a Business Using Standard Costing

question 43

Multiple Choice

If the net variance of a business using standard costing is significant relevant to total production cost, the net variance should be:

• A) assigned to cost of goods sold.
• B) allocated between WIP and FG inventories and cost of goods sold.
• C) carried forward to the next accounting period.
• D) None of these.

---

Definitions:

Long-Term Objectives

Strategic goals set to be achieved over an extended period, typically over several years, focusing on sustainable growth and development.

Timely Solutions

Responses or resolutions provided within an appropriate or advantageous time frame, often critical for addressing issues effectively.

Intuitive Feelers

Individuals who tend to make decisions based on their instincts and emotions, often prioritizing interpersonal harmony and the well-being of others.

Insightful

Having or showing an accurate and deep understanding; perceptive.