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 the answers are correct.

Question

Quizplus · Accepted Answer

If the net variance is significant, it should be allocated between work-in-process (WIP), finished goods (FG) inventories, and cost of goods sold to accurately reflect the costs in the financial statements.

If the Net Variance of a Business Using Standard Costing