Usually Under- or Overapplied Overhead Is Considered to Be an Adjustment

question 37

Multiple Choice

Usually under- or overapplied overhead is considered to be an adjustment to

• A) work in process.
• B) finished goods.
• C) finished goods and cost of goods sold.
• D) cost of goods sold.

---

Definitions:

Contract Remedy

The legal means available to a party to enforce, redress, or protect their rights under a contract.

Rescission

The legal act of voiding a contract and returning the parties involved to their original positions, as if the contract had never been executed.

Parol Evidence Rule

This legal rule restricts the use of oral (parol) statements in court when interpreting a written contract.

Written Agreement

A physically or digitally documented contract among parties that outlines the terms, conditions, and obligations of a deal or arrangement.