At the End of a Period,a Significant Material Quantity Variance

question 218

Multiple Choice

At the end of a period,a significant material quantity variance should be

• A)closed to Cost of Goods Sold.
• B)allocated among Raw Material,Work in Process,Finished Goods,and Cost of Goods Sold.
• C)allocated among Work in Process,Finished Goods,and Cost of Goods Sold.
• D)carried forward as a balance sheet account to the next perioD.

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Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment benefits and progressive taxation, designed to automatically reduce volatility in the economy by offsetting fluctuations in economic activity without direct intervention by policymakers.

Government Deficit

The financial situation that occurs when a government's expenditures exceed its revenues within a specific time period, often leading to borrowing.

Jobless Recovery

A situation where the economy begins to recover from a recession, but the unemployment rate remains high or continues to increase.

Recognition Lag

Recognition Lag is the time delay between when an economic problem becomes apparent and when it is recognized by policymakers.