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Xuanting Zhang
on Nov 12, 2024

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At the end of the fiscal year, the variances from standard are usually transferred to the finished goods account.

Finished Goods Account

An account representing the total cost of manufactured goods that are completed and ready for sale.

Fiscal Year

A 12-month cycle utilized for the purposes of financial statements and planning budgets, not necessarily coinciding with the calendar year.

Standard Variances

Differences between planned or standard costs and actual costs in budgeting and accounting, used to monitor and control operational performance.

  • Comprehend the function of budget performance reports in the financial management of organizations.
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