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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 3PA: What makes a variance favorable? Give an example of a favorable variance involving materials. What...

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Similar questions

What are some possible reasons for a material price variance? A. substandard material B. labor rate increases C. labor rate decreases D. labor efficiency
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