When Standard Costs Are Used in a Cost Accounting System

Multiple Choice

When standard costs are used in a cost accounting system:

A) A favorable cost variance results when standard amounts are less than actual costs.
B) Cost variances are shown in the year-end balance sheet as assets,if favorable,or as liabilities,if unfavorable.
C) Costs charged to the Work in Process Inventory,Finished Goods Inventory,and Cost of Goods Sold accounts are actual costs.
D) Costs charged to the Work in Process Inventory,Finished Goods Inventory,and Cost of Goods Sold accounts are at standard costs.