Could you please help me answer these accounting questions?
Could you please help me answer these accounting questions?
A large favorable variance from standard costs at the end of the year should be:
A.Carried forward to the next fiscal year.
B.Shown as other income in the income statement.
C.Added to cost of goods sold in the income statement.
D.Allocated between ending inventories and cost of goods sold.
An unfavorable volume variance in a factory is generally:
A.The responsibility of the production manager.
B.Viewed as an idle capacity loss.
C.The result of actual volume exceeding normal volume.
D.Treated as part of the controllable factory overhead variance.
Answers:
Chosen Answer
Jack C: The first item is: D. Allocated between ending inventories and cost of goods sold. This is the Cost Principle, wherein we make sure our period-end costs are corectly allocated between inventories and COGS. The second item is C. The result of actual volume exceeding normal volume. We don't know the reason ,so A and B are out. D is illogical. I hope this helps.
2009-12-12 15:45:23
Jack C: The first item is: D. Allocated between ending inventories and cost of goods sold. This is the Cost Principle, wherein we make sure our period-end costs are corectly allocated between inventories and COGS. The second item is C. The result of actual volume exceeding normal volume. We don't know the reason ,so A and B are out. D is illogical. I hope this helps.
2009-12-12 15:45:23
adiwsusanto: Kinda busy right now, I just quickly answer them
C
C
Cheers...
2009-12-12 21:26:59
2009-12-12 21:26:59