In the Immediate Write- Off Approach, Overapplied Overhead Is Regarded

question 173

Multiple Choice

In the immediate write- off approach, overapplied overhead is regarded as:

• A) a reduction to the cost of inventory
• B) a decrease in current income
• C) a decrease in cost of goods sold
• D) an addition to the cost of inventory

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Definitions:

Unearned Revenue

Unearned revenue is income received by an entity for goods or services yet to be delivered or performed, classified as a liability on the balance sheet.