A Standard Costing System Will Produce the Same Income as an Actual

question 142

Multiple Choice

A standard costing system will produce the same income as an actual costing system when end-of-period standard cost variances are assigned:

• A) Only to work-in-process (WIP) inventory.
• B) Only to finished goods inventory.
• C) To work-in-process and finished goods inventories.
• D) Entirely to cost of goods sold.
• E) To cost of goods sold and all inventory accounts.

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Definitions:

Industrial Nations

Industrial Nations are countries with significant levels of industrialization and higher standards of living.

Edward Denison

An American economist known for his work on measuring the sources of economic growth.

Productivity Growth

An increase in the output of goods and services per unit of input, reflecting improvements in efficiency, technology, or processes.

Productivity

A measure of the efficiency of production, often quantified as the amount of output per unit of input.