Since Variances Are Temporary Accounts, How Are They Usually Handled

question 57

Multiple Choice

Since variances are temporary accounts, how are they usually handled?

• A) Closed directly to cost of goods sold at the end of each month.
• B) Closed directly to cost of goods sold at the end of each accounting period.
• C) Closed directly to cost of goods manufactured at the end of each accounting period.
• D) Closed directly to profit and loss account at the end of the year.

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Definitions:

Customer Satisfaction

A measure of how products and services supplied by a company meet or surpass customer expectations, often considered a key indicator of consumer purchase intentions and loyalty.

Marketing Concept

The philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

Market Orientation

A business philosophy where the focus is on identifying and meeting the needs and desires of customers through the product mix.