The Following Are Steps in the Accounting Cycle: What

question 3

Multiple Choice

The following are steps in the accounting cycle: What is the order that is normally followed?

• A) 4, 7, 3, 6, 1, 9, 2, 8, 5
• B) 4, 7, 3, 6, 8, 1, 9, 2, 5
• C) 4, 7, 3, 6, 1, 9, 8, 2, 5
• D) None of the above

---

Definitions:

Variable Costs

Costs that change in direct proportion with the level of output or activity of a business.

Underapplied Overhead

occurs when the allocated manufacturing overhead cost is less than the actual overhead incurred, leading to a discrepancy.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Cost of Goods Sold

The immediate expenses directly linked to the manufacturing of products sold by a firm, such as labor and materials used.