If at the End of the Fiscal Year the Variances

question 151

Multiple Choice

If at the end of the fiscal year the variances from standard are significant, the variances should be transferred to the:

• A) work in process account only
• B) cost of goods sold account only
• C) finished goods account only
• D) work in process, cost of goods sold, and finished goods accounts

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Definitions:

Risk Diversified

The strategy of spreading investments across various assets to reduce exposure to risk in any single area.

Expected Income

The amount of income an individual anticipates or forecasts to receive over a certain period.

Probability

A numeric evaluation representing the probability of an event taking place, where 0 signifies no chance and 1 signifies certainty.

Expected Income

The weighted average of all possible income outcomes, where the weights are the probabilities of each outcome occurring.