Which is NOT an acceptable method of disposing of variances?
A)closing them to cost of goods sold
B)closing them to raw materials, work-in-process, and finished goods
C)closing them to work-in-process, finished goods, and cost of goods sold
D)all are acceptable methods

Question

Quizplus · Accepted Answer

Closing variances to raw materials is not an acceptable method as raw materials are not impacted by variances. The acceptable methods are closing them to cost of goods sold, work-in-process, or finished goods. Option A and C both include acceptable methods. Option D is technically correct, but option B is the best choice as it specifically identifies the incorrect method.

Which Is NOT an Acceptable Method of Disposing of Variances