BUS-A 325 #13

BUS-A 325 #13 - C) To allocate such variances implies that...

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Some accountants would argue that any variances from standard costs, when such standards are current, should be written off to cost of goods sold. The principal rationale for this treatment is: A) Consistency with current income tax provisions. B) The negligible effect this treatment has on total cost of goods sold for the period.
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Unformatted text preview: C) To allocate such variances implies that asset values on the balance sheet (i.e., inventories0 contain the cost of inefficiencies. D) This is the treatment required currently under generally accepted accounting principles....
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BUS-A 325 #13 - C) To allocate such variances implies that...

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