After Posting All Actual Factory Overhead and Applying Factory Overhead

question 132

Multiple Choice

After posting all actual factory overhead and applying factory overhead to production departments in a process costing system,

• A) There will never be underapplied overhead.
• B) There will never be overapplied overhead.
• C) There will always be underapplied overhead.
• D) There will always be overapplied overhead.
• E) There may be over or underapplied overhead.

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Definitions:

Organic Structures

Flexible and adaptive organizational structures that foster innovation, creativity, and responsiveness, emphasizing informal networks and decentralized decision-making.

Departmentalization

The method of dividing an organization into distinct departments, allowing for specialized functional areas that focus on specific tasks or duties.

Informal Communication

The exchange of information, thoughts, and messages in an unofficial, casual manner outside formal communication channels.

Centralized

The concentration of decision-making authority at the top levels of the organizational hierarchy.