Under standard cost procedures, any differences between actual costs and standard costs are:
A) Ignored until the end of the fiscal period, when they are shown in footnotes to the income statement.
B) Recorded in variance accounts.
C) Added to or subtracted from the standard cost amount immediately.
D) Treated as extraordinary production gains or losses.

Question

Quizplus · Accepted Answer

Under standard cost procedures, variances between actual costs and standard costs are recorded in variance accounts to analyze and manage cost control.

Under Standard Cost Procedures, Any Differences Between Actual Costs and Standard