Multiple Choice
Which statement is true concerning a standard costing system?
A) Unfavorable variances are recorded; favorable variances are not recorded in the accounting records.
B) Only unfavorable variances that are large enough to be investigated under the company's management by exception policy are recorded in the accounting records.
C) The costs added to the inventory accounts are recorded at standard costs rather than actual costs.
D) No Work in Process Inventory account is used.
Correct Answer:
Verified
Correct Answer:
Verified
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