The Proration Method of Disposing of Overhead Variances Prorates the Variance

question 136

True/False

The proration method of disposing of overhead variances prorates the variance based on the beginning of the reporting period account balances in Cost of Goods Sold,Work-in-Process Inventory and Finished Goods Inventory.

---

Definitions:

GAS

General Adaptation Syndrome, a model describing the body's short-term and long-term reactions to stress, inclusive of the stages alarm, resistance, and exhaustion.

Resistance

In psychology, resistance is the unwillingness or inability of a patient in psychotherapy to engage with certain memories, feelings, or thoughts that are deemed painful or distressing.

Stress

The process by which we perceive and respond to certain events, called stressors, that we appraise as threatening or challenging.

Hypertension Rates

The prevalence or incidence of high blood pressure within a specific population.