Under Standard Costing, and assuming a perpetual inventory system, when are standard costs of inventory transferred to Cost of Goods Sold?
A) As products are sold
B) During year-end closing
C) At the end of each month
D) When variances occur
E) None of the above

Question

Quizplus · Accepted Answer

Standard costs of inventory are transferred to Cost of Goods Sold as products are sold, reflecting the cost associated with the goods that are being delivered to customers.

Under Standard Costing, and Assuming a Perpetual Inventory System, When