An Accountant Recently Debited Work-In-Process Inventory and Credited Manufacturing Overhead

question 20

Multiple Choice

An accountant recently debited Work-in-Process Inventory and credited Manufacturing Overhead at a company that uses normal costing.The accountant was:

• A)applying a predetermined overhead amount to production.
• B)recognizing receipt of the factory utilities bill.
• C)recording a year-end adjustment for an insignificant amount of underapplied overhead.
• D)recognizing actual overhead incurred during the perioD.
• E)recognizing the completion of production.

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Definitions:

Alienation

The feeling of disconnection or estrangement an individual may experience within their work or society at large.

Psychological Failure

This term refers to a condition where an individual's mental and emotional state prevents them from achieving their desired goals or functioning effectively.

Principle of Specialization

The Principle of Specialization is a strategy wherein individuals or entities focus on a narrow area of expertise or production to increase efficiency and quality of output.

Unity of Direction

A management principle advocating that teams with the same objective should be directed by one manager and bound by a single plan.