When Standard Costs Are Used in a Cost Accounting System

question 97

Multiple Choice

When standard costs are used in a cost accounting system:

• A)A favorable cost variance results when standard amounts are less than actual costs.
• B)Cost variances are shown in the year-end balance sheet as assets,if favorable,or as liabilities,if unfavorable.
• C)Costs charged to the Work in Process Inventory,Finished Goods Inventory,and Cost of Goods Sold accounts are actual costs.
• D)Costs charged to the Work in Process Inventory,Finished Goods Inventory,and Cost of Goods Sold accounts are at standard costs.

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