If the net variance of a business using standard costing is significant relevant to total production cost, the net variance should be:
A) assigned to cost of goods sold.
B) allocated between WIP and FG inventories and cost of goods sold.
C) carried forward to the next accounting period.
D) None of these.

Question

Quizplus · Accepted Answer

Significant net variances should be allocated between WIP, FG inventories, and cost of goods sold to accurately reflect the cost of production.

If the Net Variance of a Business Using Standard Costing