When Overhead Is Under Applied at the End of a Year

question 65

Multiple Choice

When overhead is under applied at the end of a year,

• A)Finished Goods Inventory is overstated.
• B)Finished Goods Inventory is understated.
• C)Work in Process Inventory is overstated.
• D)Work in Process Inventory is understated.

---

Definitions:

Own Ethics

Personal or individual moral principles that govern one's behavior and decision-making.

Kohlberg's Moral Development

A theory that proposes six stages of moral development through which individuals progress as they grow older and gain maturity.

Goal Statement

A clear and specific declaration of the objectives an individual or organization aims to achieve.

Time Bound

Restricted or limited by a predetermined timeframe for completion.