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

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

a. If variances are insignificant, they will be transferred to
the cost of goods sold.

b. Variances may be reported on an income statement prepared
for management’s use.

c. Variances are reported to external financial statement
users.

d. Managers receive information on all variances.

Answer

Option c is correct answer.

Variances are not reported to external financial statement
users.

They are not intended to disclose information to outsiders.

The variances report are actually used by business manager to
know the problem that can occur when any project is handled under a
budget.

It is used to control cost.