How Should an Efficiency Variance That Is Material in Amount

question 14

Multiple Choice

How should an efficiency variance that is material in amount be treated at the end of an accounting period?

• A)Reported as a deferred charge or credit
• B)Allocated among work in process inventory,finished goods inventory,and cost of goods sold
• C)Charged or credited to cost of goods manufactured
• D)Allocated among cost of goods manufactured,finished goods inventory,and cost of goods sold

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Definitions:

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, typically encompassing wavelengths from about 380 to 740 nanometers.

Wave

A disturbance that transfers energy from one place to another without transferring matter.

Particle

A small localized object which can be ascribed several physical properties such as volume or mass.

Iris

The iris is the colored part of the eye that controls the diameter and size of the pupil, thus regulating the amount of light that enters the eye.