Which statement is true concerning a standard costing system?

Question

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In a standard costing system, costs are added to inventory accounts at standard costs, rather than actual costs. This allows for easier comparison against expected costs and better management of variances. Option A is incorrect, as both favorable and unfavorable variances are recorded. Option B is incorrect, as all variances should be recorded, not just those that meet a certain threshold. Option D is incorrect, as a Work in Process Inventory account would be used in a standard costing system to track the costs of partially completed products.

Which Statement Is True Concerning a Standard Costing System