Which of the Following Methods for Zeroing Out the Over-Applied

question 31

Multiple Choice

Which of the following methods for zeroing out the over-applied or under-applied overhead is the easiest method, but the least accurate?

• A)Correct rates at year end.
• B)Write-off to the miscellaneous expense account.
• C)Prorate the under-applied or over-applied amount among the inventory accounts.
• D)Write-off to cost of goods sold.
• E)None of the above.

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Definitions:

Psychodynamic Therapy

A therapeutic approach that emphasizes unconscious processes and past experiences in shaping current behavior and feelings.

Counterconditioning

A behavior therapy procedure that uses classical conditioning to evoke new responses to stimuli that are triggering unwanted behaviors.

Major Depression

A mental disorder characterized by a persistent and severe low mood that is accompanied by low self-esteem and by a loss of interest or pleasure in normally enjoyable activities.

Electroconvulsive Therapy

A psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders, particularly major depressive disorder and schizophrenia.