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XYZ Company uses standard costs for allocating costs to work-in-process and finished goods ...

XYZ Company uses standard costs for allocating costs to work-in-process and finished goods inventory. For the last few months, there have been high variances between total standard costs and actual costs. What is one of the likely reasons for this variance?
A) the accounting department has been developing the costs
B) production quantities are different than expected
C) there is an increase in inventory quantities on hand
D) receiving department has been stockpiling raw materials

Textbook

Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

Read 75 times

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