Which of the Following Is True Regarding the Disposition of Materials

question 167

Multiple Choice

Which of the following is true regarding the disposition of materials and labor variances?

• A) The variances for materials and labor are closed directly to Cost of Goods Sold regardless of materiality.
• B) If the materials price variance is material, it is prorated among Materials Inventory, Materials Usage Variance, Work in Process, and Finished Goods.
• C) The materials usage variance and the labor variances, if material, are prorated among Work in Process, Finished Goods, and Cost of Goods Sold.
• D) The materials usage variance and the labor variances are always prorated among Work in Process, Finished Goods, and Cost of Goods Sold.
• E) The materials usage variance and the labor variances are always closed to Cost of Goods Sold.

---

Definitions:

Internet Business Model

A plan for earning revenue and profit through online operations, which includes various frameworks such as e-commerce, advertising, subscription services, and freemium.

Distribution Efficiencies

Refers to the optimization of processes and systems for distributing products or services to reduce costs and improve speed and reliability.

SWOT Analysis

A strategic planning technique used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Niche

A specialized segment of the market for a particular kind of product or service, identified by unique needs, preferences, or identity that separates it from the market at large.