What Does the Term Imputed Payment Refer To

question 38

Multiple Choice

What does the term imputed payment refer to?  

• A) a payment that is due but NOT made 
• B) a payment NOT made through the market and therefore NOT counted in GDP 
• C) nonmarket goods and services being valued as if they were sold on a market 
• D) governmental services being valued at the cost of production

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Definitions:

Overapplied Overhead

A situation where the allocated overhead cost is more than the actual overhead cost incurred.

Underapplied Manufacturing Overhead

A situation where the actual manufacturing overhead costs are greater than the allocated overhead costs.

Work in Process

The inventory account that tracks costs for incomplete products, which are still in the process of being manufactured.

Total Manufacturing Cost

The aggregate cost of direct material, direct labor, and manufacturing overhead incurred in the production of goods.