Under standard costing, the inventory account balance may not actually reflect the true costs incurred to acquire the inventory.

Name: Under standard costing, the inventory account balance may not actually reflect the true costs incurred to acquire the inventory.
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Question

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Standard costing assigns predetermined costs to inventory, rather than actual costs incurred, which can lead to discrepancies between the inventory account balance and the true costs of acquisition.

Under Standard Costing, the Inventory Account Balance May Not Actually