Which of the following statements is false?
A) Unfavourable variances represent the costs of producing inefficiently.
B) Unfavourable variances (after closing to cost of goods sold) cause cost of goods sold to be higher.
C) Unfavourable variances are recorded as a credit entry.
D) Significant unfavourable variances should be investigated by managers.

Question

Quizplus · Accepted Answer

Unfavourable variances are recorded as a debit entry, not a credit. A credit entry would indicate a favorable variance.

Which of the Following Statements Is False