Managerial Accounting, v1.0: "Chapter 10, Section 9: Appendix: Recording Standard Costs and Variances"

This section provides an overview, summary and conclusion to this unit. In this unit you examined a standard costing system, where all inventory accounts reflect standard cost information. The differences between standard and actual data are recorded in the variance accounts and the manufacturing overhead account, which are ultimately closed out to cost of goods sold at the end of the accounting period.