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PSYCHO15rus [73]
3 years ago
5

When recording variances in a standard cost system: Question 22 options: A. Only unfavorable material variances are debited. B.

Only unfavorable material variances are credited. C. Both unfavorable material and labor variances are credited. D. All unfavorable variances are debited. E. All unfavorable variances are credited.
Business
1 answer:
Phoenix [80]3 years ago
4 0

Answer: D. All unfavorable variances are debited.

Explanation:

When recording variances in a standard cost system, all unfavorable variances are debited.

The reason for this is that it should be noted that the unfavorable variances simply means that there's excess production costs, and hence this will bring about reduction in the operating income. Hence, all unfavorable variances are debited.

Therefore, the correct option is D.

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