Parnell Company Prepared Its Income Statement for Internal Use

Multiple Choice

Parnell Company prepared its income statement for internal use. How would amounts for cost of goods sold and variances appear?

A) Cost of goods sold would be at actual costs and variances would be reported separately.
B) Cost of goods sold would be combined with the variances and the net amount reported at standard cost.
C) Cost of goods sold would be at standard costs and variances would be reported separately.
D) Cost of goods sold would be combined with the variances and the net amount reported at actual cost.