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

---

Definitions:

Going-Private Transaction

A corporate action in which a company's outstanding public shares are bought out, usually by a private investor, to delist it from public stock exchanges.

Reverse IPO

A process where a private company becomes publicly traded by acquiring a majority stake in a public company, bypassing traditional initial public offerings (IPO) processes.

Synergistic Benefits

The additional value created by combining two companies, often resulting in efficiencies or enhanced market power.

Complementary Resources

Additional resources or assets that enhance or improve the effectiveness of existing resources when used together.