Chapter 11, Problem 10QC

(Learning Objective 7—Appendix) Which of the following is not true about standard costing systems?

1. a. A standard cost income statement shows cost of goods sold at standard, along with all of the variances needed to adjust cost of goods sold back to actual.
2. b. Each type of variance has its own general ledger account.
3. c. At the end of the period, the variances are closed to the Sales Revenue account.
4. d. Standard costs are used to record the manufacturing costs entered into the inventory accounts.