When are variances normally closed to Cost of Goods Sold?
A) At the end of each month
B) As products are sold
C) When the variance occurs
D) During year-end closing
E) None of the above

Question

Quizplus · Accepted Answer

Variances are typically closed to Cost of Goods Sold during the year-end closing process to adjust the cost of goods sold for the period to reflect the actual costs incurred.

When Are Variances Normally Closed to Cost of Goods Sold