Question

Which of the following statements about the reporting of variances is not true?

a.Variances may be reported on an income statement prepared for management's use.

b.Variances are reported to external financial statement users.

c.Managers receive information on all variances.

d.If variances are insignificant, they will be transferred to Cost of Goods Sold.

Answer 1

The correct answer is (B)

Step-by-step explanation:

A variance report is an archive that helps to examine the difference between actual and predict financial statements. Likewise, it also assists in analysing what should occur and what occurred. Normally, fluctuation reports are utilised to dissect the distinction among spending plans and real execution. In that regard, variance reports are not reported to external financial statement users.