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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