If the Allocated Overhead Using a Predetermined Overhead Rate Is

question 15

Multiple Choice

If the allocated overhead using a predetermined overhead rate is less than the actual overhead costs, the difference is:

• A) expensed to the statement of comprehensive income.
• B) recognised as income in the statement of comprehensive income.
• C) recognised as part of inventory on the balance sheet.
• D) expensed to the cost of goods sold.

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Definitions:

Photorespiration

A process in plant metabolism where the enzyme RuBisCO oxygenates RuBP, wasting energy and reducing photosynthetic efficiency under certain conditions.

C3

A pathway in photosynthesis where the fixation of carbon dioxide produces a three-carbon compound as the first stable product.

C4

A photosynthetic pathway that efficiently fixes carbon dioxide in plants exposed to high light intensity and temperature, found in many grasses and crops.

CAM

Crassulacean Acid Metabolism, a photosynthetic adaptation in some plants allowing them to conserve water by fixing CO2 at night.