The Easiest Way to Dispose of Variances at the End

question 15

Multiple Choice

The easiest way to dispose of variances at the end of the period is to

• A)Ignore the variances as they will cancel out during the following period.
• B)Close the variances to raw materials inventory.
• C)Close the variances to the appropriate raw materials inventory,work in process inventory,and finished goods inventory accounts.
• D)Close the variances to the cost of goods sold account.

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Definitions:

Methanol

A simple alcohol with the formula CH3OH, used as a solvent, antifreeze, fuel, and as feedstock for the production of chemicals.

Major Organic Products

Primary substances formed as a result of organic reactions, often the focus of synthesis goals.

Major Product

The compound that is formed in the greatest yield in a chemical reaction, as predicted by the reaction mechanism.

Reaction

A process in which substances interact to form one or more new substances with different properties.