Which of the following is NOT true regarding standard costing systems?

The assertion that variances are closed to the sales revenue account is not accurate within the framework of standard costing systems. Typically, variances—such as those resulting from differences between actual costs and standard costs—are not directly closed to the sales revenue account. Instead, they are often closed to cost of goods sold or possibly to an expense account specific to the variances.

In standard costing systems, standard costs are established for products to help manage and evaluate production efficiency. These standard costs serve as benchmarks against which actual costs are compared. When actual costs exceed standard costs, variances are calculated and accounted for to analyze performance.

The other statements accurately reflect how standard costing systems function. Standard costs indeed are used to record manufacturing costs in inventory accounts, ensuring consistency in financial reporting. Each type of variance being tracked in its own general ledger account allows for clearer financial analysis and accountability. Lastly, the presentation of a standard cost income statement, which shows cost of goods sold at standard, aligns with the purpose of facilitating variance analysis and management decision-making.