Question

10.2. Is the variance favorable or unfavorable? TRUE FALSE items TRUE 1. Goods in transit & goods on consignment are the same, 2. Gross profit is the difference between net sales & cost of goods sold. 3. Purchase records end up with paying the voucher. 4. Payment for janitors & clerks is calculated under direct labor. TRUE 5. Variance is the deviation between actual cost & standard cost.​

Answer 1

The statement "Variance is the deviation between actual cost & standard cost" is true.

The statement "Goods in transit & goods on consignment are the same" is false.

The statement "Gross profit is the difference between net sales & cost of goods sold" is true.

The statement "Purchase records end up with paying the voucher" is true, as purchase records are used to create invoices and payment vouchers.

The statement "Payment for janitors & clerks is calculated under direct labor" is false, as payment for janitors and clerks is typically categorized under indirect labor.

Therefore, there are 3 true statements and 2 false statements.

Step-by-step explanation: