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:

Biodegradable

Materials that can be broken down into natural elements by microorganisms over time, without harming the environment.

Decomposers

Organisms such as fungi and bacteria that break down dead organic material, returning nutrients to the ecosystem.

Biomass Pyramid

A graphical representation showing the relative amount of living organic matter available at each trophic level in an ecosystem.

Anaerobic Respiration

A process by which organisms produce energy without the use of oxygen.