If Actual Overhead Is Less Than Applied Overhead,which of the Following

question 52

Multiple Choice

If actual overhead is less than applied overhead,which of the following will be true? Upon closing,
Overhead is       Cost of Goods Sold is

• A)underapplied credited
• B)underapplied debited
• C)overapplied debited
• D)overapplied credited

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Definitions:

Downward Sloping

Describes a line or curve on a graph that shows a decrease in value as it moves from left to right.

Average Total Cost Curve

A graph that shows a firm's per-unit cost (both fixed and variable) at various levels of output.

Upward-sloping

Describes a curve on a graph that moves higher as it goes from left to right, often used to illustrate the relationship between price and supplied quantity in supply curves.

Short-run Supply Curve

A graphical representation showing the quantity of goods that producers are willing to supply at various prices over a short period, where at least one input is fixed.