Some accountants argue that variances should be written off

Some accountants argue that variances should be written off directly to cost of goods sold. regardless of materiality, because:

a.proration requires too much effort

b.It is consistent with income tax regulations

c.This treatment is required under generally accepted accounting principles

d.prorating them implies that assets values on the balance sheet contain the cost of inefficiencies

An adjustment factor of 10 to the cost of capital for such : photosynthesis inc. is considering a project that will result in initial after-tax cash savings of 2 million at the

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Some accountants argue that variances should be written off : some accountants argue that variances should be written off directly to cost of goods sold. regardless of materiality

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