How are unfavorable standard cost variances reported in an organization's annual report?
A) as an expense in the income statement.
B) as a reduction in the work in process inventory in the balance sheet.
C) as an explanatory note to accompany the financial statements.
D)none of the above.

Question

Quizplus · Accepted Answer

Unfavorable standard cost variances are typically not directly reported in the financial statements. They are usually analyzed internally for management purposes and may be discussed in management's discussion and analysis (MD&A) section or in internal reports, but not as a direct line item in the financial statements.

How Are Unfavorable Standard Cost Variances Reported in an Organization's