Which of the Following Is Not a Step in Preparing

question 79

Multiple Choice

Which of the following is not a step in preparing the manufacturing overhead budget?

• A)Enter the total estimated overhead from the previous period.
• B)Calculate the variable overhead cost per period using the variable rate and the budgeted activity base.
• C)Subtract the non-cash overhead items from the total overhead cost to determine cash payments for overhead.
• D)Calculate the total overhead cost for the period by adding the fixed and variable overhead costs.

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Definitions:

Accumulated Depreciation

The total amount of a company's asset that has been expensed for depreciation to date.

Accrued Expense

An expense that has been incurred but has not yet been paid or recorded in financial statements through standard accounting entries.

Liabilities

Financial obligations or debts owed by a business to external organizations or individuals.

Accrued Revenues

Assets (receivables) created when revenues are earned, but cash will be collected from customers in the future; created at end of period during the adjustment process to reflect the amount of revenue earned by providing goods or services over time to customers who will pay in the future.