The Most Appropriate End-Of-Period Disposition of Underapplied or Overapplied Factory

question 110

Multiple Choice

The most appropriate end-of-period disposition of underapplied or overapplied factory overhead

• A) Is to close the amount to cost of goods sold.
• B) Is to close the amount to finished goods inventory only.
• C) Is to apportion the amount to finished goods inventory and cost of goods sold.
• D) Depends on the significance (that is, size) of the variance in question.
• E) Is to charge the amount as a period cost, e.g., "miscellaneous expense."

---

Definitions:

Cochlea

A spiral-shaped, fluid-filled inner ear structure crucial for converting sound waves into nerve signals.

Pain Receptors

Sensory neurons located throughout the body that respond to damaging stimuli by sending pain signals to the brain.

Temperature

A measure of the kinetic energy of the particles in an object or substance, indicative of how hot or cold it is.

Basilar Membrane

A structure in the cochlea of the inner ear that plays a key role in the sensory mechanism of hearing.