When Variances Are Immaterial, Which of the Following Statements Is

question 62

Multiple Choice

When variances are immaterial, which of the following statements is true of the journal entry to write-off the variable overhead variance accounts?

• A) Cost of Goods Sold account will always be debited.
• B) Unfavorable efficiency variance will be credited.
• C) Favorable efficiency variance will be credited.
• D) Cost of Goods Sold account will always be credited.

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Definitions:

Intermediate Range

The range within which all intermediate goods, price levels, and outputs are determined by a mix of supply and demand.

Classical Range

In economics, the range in which output and employment grow at their natural rate, and prices are stable.

Aggregate Supply Curve

A graphical representation showing the total quantity of goods and services that producers in an economy are willing and able to supply at various price levels.

Keynesian Region

An economic concept from Keynesian theory suggesting ranges of output levels where total spending is sensitive to changes in the level of income, affecting unemployment levels.