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1. Does the Cost of Gost Solds increase or decrease when closing a favorable variance? Does income increase or decrease when a favorable variance is close to the Cost of Goods Sold? Explain. 2. Does the Cost of Goods increase or decrease when closing an unfavorable variance? Does income increase or decrease when an unfavorable variance is close to the Cost of Goods Sold? Explain. Explain the meaning of a favorable variance and an unfavorable variance.

1. Does the Cost of Gost Solds increase or decrease when closing a favorable variance? Does income increase or decrease when a favorable variance is close to the Cost of Goods Sold? Explain. 2. Does the Cost of Goods increase or decrease when closing an unfavorable variance? Does income increase or decrease when an unfavorable variance is close to the Cost of Goods Sold? Explain. Explain the meaning of a favorable variance and an unfavorable variance.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. Does the Cost of Gost Solds increase or decrease when closing a favorable variance? Does income increase or decrease when a favorable variance is close to the Cost of Goods Sold? Explain. 2. Does the Cost of Goods increase or decrease when closing an unfavorable variance? Does income increase or decrease when an unfavorable variance is close to the Cost of Goods Sold? Explain. Explain the meaning of a favorable variance and an unfavorable variance.
Transcribed Image Text:1. Does the Cost of Gost Solds increase or decrease when closing a favorable variance? Does income increase or decrease when a favorable variance is close to the Cost of Goods Sold? Explain. 2. Does the Cost of Goods increase or decrease when closing an unfavorable variance? Does income increase or decrease when an unfavorable variance is close to the Cost of Goods Sold? Explain. Explain the meaning of a favorable variance and an unfavorable variance.
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