QUESTION 1 Costs that are initially recorded as assets and expensed when goods sold are called a. research and development costs. O b.inventoriable costs. O c. period costs. O d. irrelevant costs. QUESTION 2 Why should a production-volume variance (PVV) that is material be prorated among work-in-process, finished goods, cost and cost of goods sold rather than writing it all off to cost of goods sold? O a. If a PWV is always written off to cost of goods sold, a company could set its standard costs to either increase or decrease operating incomes. O b. If a PWV is always written off to cost of goods sold, then the assets on the balance sheet would be the same as actual costs. O c. If a PWV is always written off to cost of goods sold, then the liabilities on the balance sheet would be overstated. O d. If a PWV is always written off to cost of goods sold, then the balances in the inventory accounts on the balance sheet would be most accurate. QUESTION 3 What is the difference between a standard costing system and an actual costing system in terms of overhead costs? O a. Standard costing allocates overhead costs on the basis of the actual overhead rates times the standard quantities of the allocation bases allowed for the actual outputs produced whereas actual costing allocates overhead costs on the basis of the actual overhead rates times the actual quantities of the allocation bases used for the actual outputs produced. O b. Standard costing allocates overhead costs on the basis of the standard overhead rates times the standard quantities of the allocation bases allowed for the actual outputs produced whereas actual costing allocates overhead costs on the basis of the actual overhead rates times the actual quantities of the allocation bases used for the actual outputs produced. O c. Standard costing allocates overhead costs on the basis of the standard overhead rates times the actual quantities of the allocation bases used for the actual outputs produced whereas actual costing allocates overhead costs on the basis of the actual overhead rates times the actual quantities of the allocation bases used for the actual outputs produced. O d. Standard costing allocates overhead costs on the basis of the standard overhead rates times the standard quantities of the allocation bases allowed for the budgeted outputs produced whereas actual costing allocates overhead costs on the basis of the actual overhead rates times the actual quantities of the allocation bases used for the actual outputs produced