Operating income reported on the end-of-period financial statements is changed when ________ is (are)used to handle the production-volume variance at the end of the accounting period.

Question

Quizplus · Accepted Answer

The write-off variances to cost of goods sold approach directly affects operating income by adjusting the cost of goods sold, whereas the other methods distribute variances differently, potentially impacting inventory values instead.

Operating Income Reported on the End-Of-Period Financial Statements Is Changed