Which of the following statements is(are)true? (A)If variances are prorated at the end of the accounting period,an unfavorable direct materials price variance will,when prorated,increase the value of the Finished Goods Inventory.
(B)Insignificant variances are not generally prorated at the end of the accounting period and are closed to the Cost of Goods Sold.
A) Only A is true.
B) Only B is true.
C) Both A and B are true.
D) Neither A nor B is true.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is(are)true? (A)If variances are prorated at the end of the accounting period,an unfavorable direct materials price variance will,when prorated,increase the value of the Finished Goods Inventory.
(B)Insignificant variances are not generally prorated at the end of the accounting period and are closed to the Cost of Goods Sold.
A) Only A is true.
B) Only B is true.
C) Both A and B are true.
D) Neither A nor B is true.

Which of the Following Statements Is(are)true? (A)If Variances Are Prorated