At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account.

Name: At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account.
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The variances from standard are usually transferred to a variance account, not the finished goods account. The variance account is used to record the difference between the standard cost and the actual cost of production.

At the End of the Fiscal Year, the Variances from Standard