When completing a standard costing income statement, unfavorable variances for direct materials or direct labor will go to reduce the "cost of goods sold at standard cost."

Name: When completing a standard costing income statement, unfavorable variances for direct materials or direct labor will go to reduce the "cost of goods sold at standard cost."
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Question

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Unfavorable variances for direct materials or direct labor increase the "cost of goods sold at standard cost," not reduce it.

When Completing a Standard Costing Income Statement, Unfavorable Variances for Direct