Present arguments in support of each of the following ways of treating standard cost variances in financial reporting (a) As deferred charges or credits on the balance sheet (b) As charges or credits on the income statement (c) Allocated between inventories and cost of goods sold ...

a Deferral of variances is supported on the grounds that if the standards in use are based on normal price efficiency and output levels positive and n ...

Present arguments in support of each of the following ways of treating standard cost variances in financial

Question:

Present arguments in support of each of the following ways of treating standard cost variances in financial reporting:
(a) As deferred charges or credits on the As charges or credits on the income statement
(c) Allocated between inventories and cost of goods sold Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...