Which of the Following Statements Is Incorrect

question 14

Multiple Choice

Which of the following statements is incorrect?

• A)An input measure rather than an output measure is selected when computing an overhead rate.
• B)A debit balance in the overhead account indicates that overhead is overabsorbed.
• C)Job order costing accumulates all indirect costs in an overhead account and distributes these costs to individual jobs through the use of an overhead rate.
• D)A prospective overhead rate is set at the beginning of the year and is used to charge overhead to jobs.
• E)Most manufacturing firms will use direct labor hours or direct labor costs to allocate at least a portion of overhead.

---

Definitions:

Blood pH

A measure of the acidity or alkalinity of the blood, crucial for the body's proper functioning.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is absorbed by plants in photosynthesis.

Surface Tension

The elastic tendency of a fluid surface which makes it acquire the least surface area possible, due to intermolecular forces.

Adhesive Forces

Attractive forces between unlike substances, such as water molecules adhering to glass surfaces.