Which One of the Following Journal Entries in a Standard

question 54

Multiple Choice

Which one of the following journal entries in a standard cost system is needed at the end of the period to close out to Cost of Goods Sold an unfavorable production-volume variance?

• A) A credit to Finished Goods Inventory, at standard cost.
• B) A credit to Cost of Goods sold, at standard cost.
• C) A credit to Cost of Goods sold, at actual cost.
• D) A debit to the Production Volume Variance account.
• E) A debit to Cost of Goods sold.

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Definitions:

Clearing House Interbank Payments System

An electronic payment system operated by major banks for the purpose of settling transactions among themselves.

Society of Worldwide Interbank Financial Telecommunications

An international organization that provides a network for financial institutions globally to send and receive information about financial transactions.

Client Accounts

Financial accounts held by a financial institution on behalf of its clients, often used for the safekeeping of money, securities, or other assets.

Unbalanced Value Flow

A situation in a business process where the value output is not proportional to the value input, leading to inefficiencies or waste.