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:

Construct

An abstract idea, concept, or theory that is created for the purpose of scientific research.

Measurable

Capable of being quantified or expressed as a quantity or in numerical terms.

Item Response Theory (IRT)

A theory and related statistical models that examine the relationship between the latent traits of individuals and their performance on test items.

Measurement Approaches

Refer to the various methods and tools used to collect data in research studies, including quantitative and qualitative measures.