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.

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Definitions:

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The process involved in the act of breathing in, where air moves from the external environment into the lungs.

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A set of metabolic processes that take place within cells to convert biochemical energy from nutrients into adenosine triphosphate (ATP), releasing waste products.

Mitochondria

Organelles within cells that are responsible for producing energy through the process of cellular respiration.

Electron Acceptor

A chemical entity that accepts electrons transferred to it from another compound, crucial in various biological and chemical processes.