11&12

Variances with overall favorable effects will carry credit balances which decrease operating income. credit balances which increase operating incorne. debit balances which increase operating income. debit balances which decrease operating income. Question 12 Because variance accounts are temporary accounts, their balances will carry over from one period to the next. temporary accounts, they must be closed at year-end. permanent accounts, they must be closed at year-end. permanent accounts, their balances will carry over from one period to the next