How are unfavorable standard cost variances reported in an organization's annual report?
A)As an expense in the income statement.
B)As a reduction in the work in process inventory in the balance sheet.
C)As an explanatory note to accompany the financial statements.
D)None of the answers are correct.

Question

Quizplus · Accepted Answer

Unfavorable standard cost variances are typically not directly reported in the annual report. They are usually analyzed internally for management purposes and may affect the cost of goods sold or inventory valuations indirectly.

How Are Unfavorable Standard Cost Variances Reported in an Organization's