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

Question

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Insignificant favorable variance accounts are those with small variances that do not significantly impact or affect the overall cost of production. These accounts are typically closed to the Cost of Goods Sold or Other Expenses account, which means they are effectively reducing a company's total expenses.

Which Statement Is True Concerning Insignificant Favorable Variance Accounts in a Standard