Some accountants would argue that any variances from standard costs, when such standards are current, should be written off to Cost of Goods Sold (or other income statement account). The principal conceptual rationale for this treatment is:

Multiple Choice:

(A) This is the treatment required currently under generally accepted accounting principles in the U.S.

(B) To allocate such variances (as the alternative treatment) implies that asset values on the balance sheet (i.e., inventories) contain the cost of inefficiencies.

(C.) The negligible effect this treatment has on total Cost of Goods Sold (or the Income Statement) for the period.

(D) The increased information and insight this procedure provides to management, for better managing operations.

(E.) Simplicity of applicationthis is an expedient method.