GAAP Permits Which of the Following Methods for Zeroing Out

question 35

Multiple Choice

GAAP permits which of the following methods for zeroing out the overhead control account?

• A)Correct the rates at year end.
• B)Charge the under-applied or over-applied overhead to cost of goods sold.
• C)Prorate the under-applied or over-applied overhead among the inventory accounts and cost of goods sold.
• D)B and C only.
• E)A, B and C

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Definitions:

Chemical Structure

The arrangement of atoms in a chemical substance and the chemical bonds that hold those atoms together, determining the substance's properties.

Sensory Adaptation

The process by which the sensitivity to a stimulus declines if the stimulus is presented for an extended period of time.

Stimulus

Any event or situation that evokes a response from an organism.

Sensory Apparatus

The complex of sensory organs and parts an organism uses to detect changes in its environment.