If variances are not prorated at the end of the accounting period, they are closed to the Cost of Goods Sold.

Name: If variances are not prorated at the end of the accounting period, they are closed to the Cost of Goods Sold.
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Quizplus · Accepted Answer

In standard costing, if variances are not prorated among inventory accounts, they are typically closed to the Cost of Goods Sold to adjust for the difference between actual and standard costs.

If Variances Are Not Prorated at the End of the Accounting