If Standard Cost Variances Are Allocated (I

question 135

Multiple Choice

If standard cost variances are allocated (i.e. ,prorated) to inventory and cost of goods sold (CGS) accounts at the end of a period,which of the following is correct?

• A)Conceptually,the amount allocated to each account is based on the relative amount of the current period's standard cost in the end-of-period balance in each account.
• B)The resulting balances represent relative actual cost in each of the affected accounts.
• C)There is a presumption that the net variance for the period is immaterial in amount.
• D)The amount allocated to inventories is generally larger than the amount allocated to CGS.

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Definitions:

Superior Olivary Complex

A group of nuclei located in the brainstem which play a crucial role in the auditory pathway, helping with the localization of sound.

High-frequency

Refers to a situation or phenomenon occurring at a rapid rate of recurrence over a particular period of time.

Auditory System

The sensory system that includes the ear and its structures, which process sound and facilitate hearing and balance.

Superior Olivary Complex

A group of nuclei within the brainstem that play a crucial role in sound localization and auditory processing.