Which of the following accounts is always part of the closing entry for variances?
A) Wages Payable
B) Work in Process
C) Cost of Goods Sold
D) Finished Goods
E) Three of the above

Question

Quizplus · Accepted Answer

Some companies write off variances to Cost of Goods Sold. Others allocate variances across Work in Process, Finished Goods, and Cost of Goods Sold. Either way, Cost of Goods Sold would be included in the entry.

Which of the Following Accounts Is Always Part of the Closing