If at the end of the fiscal year, the variances from standard are significant, the variances should be transferred to the
A) work in process account
B) cost of goods sold account
C) finished goods account
D) work in process, cost of goods sold, and finished goods accounts

Question

Quizplus · Accepted Answer

Variances from standard costs at the end of the fiscal year are typically allocated among the work in process, cost of goods sold, and finished goods accounts to accurately reflect the costs associated with production, goods sold, and inventory on hand. This distribution ensures that the financial statements accurately represent the company's financial position.

If at the End of the Fiscal Year, the Variances