Which statement is true concerning the variance accounts in a standard costing system?

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Variance accounts in a standard costing system are temporary accounts and are closed before financial statements are prepared. This means that they do not appear on the balance sheet as adjustments to Work in Process Inventory or cause the general ledger to be out of balance. Also, whether the variance account has a debit or credit balance prior to closing depends on whether the actual costs were higher or lower than the standard costs.

Which Statement Is True Concerning the Variance Accounts in a Standard