What Does a Debit Balance in the Manufacturing Overhead Account

question 86

Multiple Choice

What does a debit balance in the Manufacturing Overhead account at the end of the period tell management?

• A)that overhead costs need to be controlled
• B)that not enough overhead costs were incurred
• C)that actual overhead was less than estimated overhead costs
• D)that overhead was under applied

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Definitions:

Rationalization

A defense mechanism where controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Miserliness

An excessive desire to save money or spend as little as possible; extreme parsimony or stinginess.

Rationalization

A coping technique where disputable actions or emotions are rationalized in an apparently logical way to evade the actual reason behind them.

Financial Aid

Any form of funding that assists students in paying for their education, typically coming from various sources such as scholarships, grants, and loans.