When Standard Manufacturing Costs Are Recorded in the Accounts and the Cost

question 14

Multiple Choice

When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period, the cost variances should be:

• A) Carried forward to the next accounting period.
• B) Allocated between cost of goods sold, finished goods, and goods in process.
• C) Closed to cost of goods sold.
• D) Written off as a selling expense.
• E) Ignored.

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Definitions:

Urge to Be Thin

A strong desire or compulsion toward achieving a lower body weight or slim physique, often found in eating disorders.

Anorexics

Individuals suffering from anorexia nervosa, an eating disorder characterized by an obsessive fear of gaining weight and severely restricting food intake.

Severe Obesity

A condition characterized by an excessively high body mass index (BMI), often exceeding 40, which poses significant health risks.

Kleptomania

A psychiatric disorder characterized by an irresistible urge to steal items not needed for personal use or monetary value.