Which of the Following Statements About Under- or Overapplied Manufacturing

question 36

Multiple Choice

Which of the following statements about under- or overapplied manufacturing overhead is correct?

• A) After the entry to transfer over- or underapplied overhead to Cost of Goods Sold is posted Manufacturing Overhead will have a zero balance.
• B) When Manufacturing Overhead has a credit balance overhead is said to be under-applied.
• C) At the end of the year under- or overapplied overhead is eliminated by a closing entry.
• D) When annual financial statements are prepared overapplied overhead is reported in current liabilities.

---

Definitions:

Token Economy

A behavioral modification technique where desirable behaviors are rewarded with tokens that can be exchanged for various privileges or treats.

Behavior Modification

A therapeutic approach that seeks to change undesirable behaviors through the systematic application of the principles of learning.

Cognitive Therapy

Therapy that teaches people new, more adaptive ways of thinking and acting; based on the assumption that thoughts intervene between events and our emotional reactions.

Behavior Modification

A form of psychotherapy that uses basic learning techniques to change maladaptive behaviors to more desirable ones.