Which One of the Following Is True Concerning Immaterial Under-Applied

question 85

Multiple Choice

Which one of the following is true concerning immaterial under-applied overhead at year end?

• A)It is subtracted from Cost of Goods Sold.
• B)It is debited to Cost of Goods Sold.
• C)It is reported as an inventory account in the Balance Sheet.
• D)It is added to the Manufacturing Overhead account.

---

Definitions:

Substitution Effect

A phenomenon where consumers replace a more expensive item with a cheaper alternative when the price rises.

Product Quality

The attributes and characteristics of a product that determine its ability to satisfy customer needs and demands.

Property Crime

Crimes involving the theft of property or money without the use of force against the victim.

Legitimate Earnings

Legitimate earnings refer to income received from lawful and ethical business activities, operations, or professions, as opposed to profits derived from illicit or unethical activities.