When a client has standard cost records, an efficient and useful method of determining valuation is to review and analyze variances.

Question

Quizplus · Accepted Answer

Reviewing and analyzing variances can provide valuable insights into the actual cost of production and help determine the correct valuation for inventory. This is because variances show the differences between actual costs and standard costs, which can then be used to adjust the valuation of inventory. Therefore, this method can be efficient and useful for companies that use standard cost records.

When a Client Has Standard Cost Records, an Efficient and Useful