Regarding a standard cost income statement, which of the following is true?
A)Operating income is shown at standard cost.
B)Variances are listed separately.
C)Cost of goods sold is shown only at standard cost.
D)Sales revenue is shown only at standard revenue.

Question

Quizplus · Accepted Answer

A standard cost income statement provides information on the variances between actual costs and budgeted or standard costs for a particular period. Therefore, variances are listed separately to identify the differences between the actual results and the budgeted or standard results. Operating income may be shown at actual or standard cost, depending on the preference of the organization. Cost of goods sold may be shown at actual or standard cost, depending on the cost flow assumption used by the organization. Sales revenue is always shown at actual revenue, as it represents the actual amount of revenue earned during the period.

Regarding a Standard Cost Income Statement, Which of the Following