When Not Enough Overhead Costs Are Charged to Products During

question 165

Multiple Choice

When not enough overhead costs are charged to products during production, the result is

• A)overapplied overhead.
• B)underapplied overhead.
• C)an overstatement of cost of goods sold.
• D)an overstatement of inventory cost.

---

Definitions:

Shale Rock

A fine-grained sedimentary rock composed of clay, mineral flakes, and organic matter, known for its ability to store oil and gas.

Mistake Of Value

An error regarding the understanding or assessment of the value of an item or deal, potentially affecting a contract's validity.

Material Facts

Important information that could influence a decision-making process, particularly in legal and financial contexts.

Justifiably Relied

A legal principle where a party has a right to depend on the information or commitment of another, expecting it to be true or honored.