Comprehensive Detailed Explanation

The requirement:

The company is using a standard costing method.

With standard costing, when actual purchase costs differ from the standard cost, the difference must be posted to a specific General Ledger account (commonly referred to as the Purchase Variance Account).

In Dynamics 365 Business Central, the account for these variances is defined in the General Posting Setup.

Why the correct answer is B (General Posting Setup):

The General Posting Setup page links the Gen. Business Posting Group (assigned to vendors/customers) with the Gen. Product Posting Group (assigned to items).

In this setup, you configure accounts for purchases, discounts, and most importantly here: the Purchase Variance Account (where the system posts differences between actual and standard costs).

This ensures variances are tracked automatically when using standard