The Proration Method of Disposing of Overhead Variances Assigns the Variance

question 104

Multiple Choice

The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances to_____.

• A)WIP Inventory, Finished Goods Inventory, and Direct Materials Inventory
• B)Cost of Goods Sold, WIP Inventory, and Direct Materials
• C)Direct Materials Inventory and WIP Inventory
• D)Cost of Goods Sold, WIP Inventory, and Finished Goods Inventory

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Definitions:

Objective Attributes

Features or characteristics of a product or service that can be quantitatively measured.

Subjective Attributes

Characteristics of an object, service, or product assessed based on opinions, feelings, and experiences rather than objective measures.

Unbiased Purchase Decision

A buying decision made by consumers based on objective information and without undue influence from marketing or personal biases.

Product-rating Organizations

Independent bodies that evaluate and rate the quality, safety, or performance of various products and services.