Explain Why the Variance Accounts Need to Be Closed at the End

question 1

Essay

Explain why the variance accounts need to be closed at the end of each accounting period.

---

Definitions:

Price Of Corn

The market value per unit of corn, influenced by factors such as supply, demand, weather conditions, and agricultural policies.

Technological Improvements

Enhancements in technology which boost productivity, efficiency, or create new products and services.

Crop

Cultivated plants or agricultural produce, such as grain, vegetables, or fruit, considered as a group.

Risk Profile

An evaluation of an individual's or organization's willingness to take risks, as well as their financial capacity to bear risk.