The process of closing ending variance account balances increases Cost of Goods Sold.

Name: The process of closing ending variance account balances increases Cost of Goods Sold.
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Question

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Closing ending variance account balances involves transferring these amounts to the Cost of Goods Sold (COGS), which adjusts the COGS to reflect actual costs, but this process itself does not inherently increase COGS; it corrects it for variances.

The Process of Closing Ending Variance Account Balances Increases Cost