When Using a Standard Costing System,at the End of an Accounting

question 10

Multiple Choice

When using a standard costing system,at the end of an accounting period,the balances in which of the following accounts will be at standard amounts?

• A)Raw materials inventory and Work in process only
• B)Cost of goods sold only
• C)Finished goods and cost of goods sold only
• D)Raw materials,Work in process,Finished goods,and Cost of goods sold

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Definitions:

Expansionary Gap

A condition where an economy's actual gross domestic product is higher than its long-run potential, leading to upward pressure on prices.

Government Purchases

Spending on products and services by all levels of government, not including transfer payments.

Unemployment Insurance

A government program that provides financial assistance to workers who have lost their jobs through no fault of their own.

Discretionary Fiscal Policy

Government policy that entails the use of government spending and tax policies to influence the economy, based on specific goals or conditions.