When the net amount of all product cost variances is not material during the period relative to the total production costs incurred, the net variance is:
A)treated as an adjustment to cost of goods sold.
B)treated as an adjustment to cost of goods manufactured.
C)treated as an adjustment to work in process, finished goods, and cost of goods sold.
D)treated as an adjustment to manufacturing overhead.

Question

Quizplus · Accepted Answer

When the net amount of all product cost variances is not material, it is typically adjusted against the cost of goods sold to simplify accounting and avoid unnecessary complexity in inventory valuation.

When the Net Amount of All Product Cost Variances Is