If a Company Using Job-Order Costing Overestimates Its Manufacturing Overhead

question 31

Short Answer

If a company using job-order costing overestimates its manufacturing overhead costs the affect will be to: a. Overstate net operating income.
B) Understate the ending finished goods inventory account balance.
C) Overstate cost of goods sold.
D) Overstate cost of goods manufactured.

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Definitions:

Ethyne

A hydrocarbon compound with the formula C2H2, known as acetylene, used as a fuel and a building block in organic synthesis.

Dipole Moment

A measure of the polarity of a chemical bond within a molecule, quantifying the separation of positive and negative charges in a molecule.

IR Spectrum

A graphical display of infrared light absorption by molecules, useful for identifying functional groups and chemical bonds.

Bending Vibrations

Oscillations of atoms in a molecule about their equilibrium positions that change the angle between them without altering the molecule's bond lengths.