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:

Relative Risk

A ratio comparing the probability of an event occurring in an exposed group to a non-exposed group.

Fasting Glucose

Measurement of blood sugar levels after abstaining from food and drink (except water) for at least 8 hours, used in diagnosing diabetes.

CVD

Cardiovascular Disease, a class of diseases that involve the heart or blood vessels.

Relative Risk

A measure used in epidemiology to compare the risk of a certain event occurring in one group with the risk of it occurring in another group.