Some accountants argue that variances should be written off directly to cost of goods sold, regardless of materiality, because:

Question

Business

Braedon Dickson

Yesterday, 17:22

Some accountants argue that variances should be written off directly to cost of goods sold, regardless of materiality, because:

+2

Answers (1)

Know the Answer?

Velasquez · Answer 1

I had to look for the options and here is my answer.

Some accountants assert that variances should be written off directly to the price of the sold goods, regardless or materiality because product proration would indicates that assets values on the balance sheet consist of the inefficiency costs.