When Standard Manufacturing Costs Are Recorded in the Accounts and the Cost

question 14

Multiple Choice

When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period, the cost variances should be:

• A) Carried forward to the next accounting period.
• B) Allocated between cost of goods sold, finished goods, and goods in process.
• C) Closed to cost of goods sold.
• D) Written off as a selling expense.
• E) Ignored.

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Definitions:

Recall

The act of retrieving information or memories from the past, which are stored in the brain.

Method Of Loci

An ancient mnemonic technique that involves visualizing items to be remembered along a familiar path or location to enhance memory recall.

Retrieval

The process of getting something back, or accessing information stored in the memory.

Spatial Location

The specific position or area within a three-dimensional space where an object or person is located.