Which of the following statements regarding standard cost accounting systems is true?

Group of answer choices

Under generally accepted accounting principles, or GAAP, corporations are permitted but not required to report inventory balances at standard costs.

At the end of the accounting period, every cost variance account is closed out to cost of goods sold.

Unfavorable cost variances increase the book value of work in process inventory, but not the book value of raw materials inventory.

Favorable cost variances are recorded as debits to the variance account, whereas unfavorable cost variances are recorded as credits to the variance account.