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:

Breach

A violation or infringement of a law, agreement, or code of conduct.

Intoxicated Mental State

A condition resulting from the consumption of alcohol or drugs, impairing a person's cognitive functions and judgment.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Minor

Legally refers to an individual who is below the age of majority, and thus, has limited legal rights and responsibilities.