Answer the following statements true (T) or false (F)
1) When a manufacturing company uses a standard cost system, Work-in-Process Inventory is debited at standard input quantities and standard costs.
2. When a manufacturing company uses a standard cost system, an unfavorable variance is a contra expense
3. The standard cost income statement doesn't alter the actual operating income—it simply emphasizes the variances from standard.
4. On a standard cost income statement, the variances with debit balances are shown in parentheses because they are contra expenses and therefore decrease the expense Cost of Goods Sold.
n a Standard Cost System? (H1)
1. TRUE
2. FALSE
3. TRUE
4. FALSE - Explanation: On a standard cost income statement, the variances with credit balances are shown in parentheses because they are contra expenses and therefore decrease the expense Cost of Goods Sold.
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