If Over- Under-Applied Overhead Amount Is Small, It Is Justifiable

question 37

True/False

If over- under-applied overhead amount is small, it is justifiable to write it off to cost of goods sold.

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Definitions:

Availability Heuristic

An intellectual shortcut based on immediate examples that present themselves in a person's thoughts when assessing a specific area, idea, method, or decision.

Writer

An individual who engages in the act of producing written content, such as books, articles, or other textual materials.

Teacher

An individual who instructs or educates others, typically in an academic setting.

Simple Probability

The likelihood of a single event occurring, calculated by dividing the number of favorable outcomes by the total number of possible outcomes.