Standard cost variances are automatically closed to Cost of Goods Sold at the end of each month.

Name: Standard cost variances are automatically closed to Cost of Goods Sold at the end of each month.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Standard cost variances can be closed to Cost of Goods Sold, but this is a policy decision by the company and not an automatic process. Companies may choose to close variances to different accounts based on their accounting practices.

Standard Cost Variances Are Automatically Closed to Cost of Goods