A Large Favorable Variance from Standard Costs at the End

question 96

Multiple Choice

A large favorable variance from standard costs at the end of the year should be:

• A)Carried forward to the next fiscal year.
• B)Shown as other income in the income statement.
• C)Added to cost of goods sold in the income statement.
• D)Allocated between ending inventories and cost of goods sold.

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Definitions:

Stock Price

The cost of purchasing a share of a company's equity, representing ownership in the firm, and fluctuates based on supply and demand in the market.

Index Funds

Investment funds designed to replicate the performance of a specific index, by holding all or a representative sample of the securities in the index.

Actively Managed

In finance, refers to investment funds where the portfolio manager makes specific investments with the goal of outperforming an investment benchmark index.

Financial Intermediary

An institution that acts as a middleman between investors and borrowers, helping to channel funds from those with excess money to those in need of funds.