Favorable Standard Cost Variances Are Normally Closed at the End

question 80

Multiple Choice

Favorable standard cost variances are normally closed at the end of the period by:

• A)Crediting the variance account and debiting Cost of Goods Sold.
• B)Debiting the variance account and crediting Cost of Goods Sold.
• C)Debiting the variance account and crediting Work in Process.
• D)Crediting the variance account and debiting Work in Process.

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Definitions:

Assembly Line Worker

An individual employed in a manufacturing process where a product is assembled incrementally by workers stationed at fixed points.

Misrepresent

To provide false or misleading statements, especially with the intention to deceive.

Gratuitous Agent

An individual who acts on behalf of someone else without expecting or receiving any compensation for their services.

Sales Agent

An individual or entity authorized to sell and promote products or services on behalf of a company, often earning a commission.