Which of the following statements is/are true?
A) Variances are temporary accounts.
B) Variance accounts may be closed to cost of goods sold.
C) Favourable variances are recorded as a credit entry.
D) All of the given answers.

Question

Quizplus · Accepted Answer

All the statements provided are true regarding variances in accounting. Variances are indeed temporary accounts that are typically closed to the cost of goods sold at the end of an accounting period. Favourable variances, indicating cost savings or efficiency gains, are recorded as a credit entry, while unfavourable variances are recorded as a debit entry.

Which of the Following Statements Is/are True