You have updated a cost category price from $5.00 to $7.00. You process a production order which uses the cost category.
After ending the order, you realize a new standard cost was not calculated after the price update.
You need to validate how this impacted the financial voucher transactions.
Which transaction would you see in the general ledger?
When you update the cost category price from $5.00 to $7.00 and process a production order without recalculating the standard cost, the difference between the updated cost and the standard cost results in a variance. This variance, specifically due to changes in price, would typically result in a debit entry to the production price variance account to reflect the increased cost. Therefore, $2.00 debit to the production price variance account is the appropriate transaction in the general ledger.
B correct
A or B?
the answer B is the correct one
Should be A