It is possible that a company's financial statements may report inventories at
A) budgeted costs.
B) standard costs.
C) both budgeted and standard costs.
D) none of these.

Question

Quizplus · Accepted Answer

Standard costs are used to report inventories in financial statements because they provide a more accurate representation of the cost of goods sold. Standard costs are based on historical data and are updated regularly to reflect changes in the cost of raw materials, labor, and overhead.

It Is Possible That a Company's Financial Statements May Report