Prorated allocation of production-volume variance results in a higher operating income for current year than if the entire favorable production-volume variance were credited to Cost of Goods Sold.

Question

Quizplus · Accepted Answer

Proration of production-volume variance results in a lower operating income for current year than if the entire favorable production-volume variance were credited to Cost of Goods Sold.

Prorated Allocation of Production-Volume Variance Results in a Higher Operating