If the Net Variance of a Business Using Standard Costing

question 52

Multiple Choice

If the net variance of a business using standard costing is significant relevant to total production cost, the net variance should be:

• A) assigned to cost of goods sold.
• B) allocated between WIP and FG inventories and cost of goods sold.
• C) carried forward to the next accounting period.
• D)none of the above.

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Definitions:

Cheat

To act dishonestly or unfairly in order to gain an advantage.

Absolute Free Will

The concept that individuals have the complete freedom to choose their actions and make decisions independently of any external constraints or influences.

Relative Free Will

Relative free will refers to the concept that while human actions and decisions are influenced by various internal and external constraints, individuals still possess a degree of choice or control over their actions within those constraints.

Social Behavior

Actions and interactions among individuals in a society, influenced by social norms and cultural contexts.