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:

Goals

Objectives or desired results that an individual or organization aims to achieve.

Objectives

Specific, measurable goals set by an individual or organization to achieve in a defined timeframe.

Base Salary

The initial rate of compensation that an employee receives not including bonuses, benefits, or any additional pay.

Individual-level Performance-based

Relates to assessment or evaluation mechanisms focused on the output or achievements of a single person.