Since variances are temporary accounts, how are they usually handled?

A) Closed directly to cost of goods sold at the end of each month.
B) Closed directly to cost of goods sold at the end of each accounting period.
C) Closed directly to cost of goods manufactured at the end of each accounting period.
D) Closed directly to profit and loss account at the end of the year.

Variances

Differences between planned, budgeted, or standard costs and actual costs in business operations.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.

Accounting Period

A specific period of time used for financial reporting, typically a quarter or year, used to calculate financial performance.