Overallocated Manufacturing Overhead Costs Occur When the Manufacturing Overhead Costs

question 198

True/False

Overallocated manufacturing overhead costs occur when the manufacturing overhead costs allocated are greater than the amount actually incurred.

---

Definitions:

Operating Income

Income earned from a firm's core business operations, excluding deductions of interest and taxes.

Operating Expenses

The costs associated with the day-to-day operations of a business, excluding the costs of goods sold.

Rent Revenue

Income earned from leasing out properties or spaces to tenants.

Periodic Inventory System

An inventory system that updates inventory balances after a specific period, typically using physical counts.