Which Method for Dealing with Under/over Allocated Overhead Provides the Most

question 154

Multiple Choice

Which method for dealing with under/over allocated overhead provides the most accurate individual job cost records?

• A)proration approach
• B)adjusted allocation-rate approach
• C)immediate write-off to cost of goods sold
• D)either proration or adjusted allocation-rate approach would give same result
• E)either the proration approach or the immediate write-off to cost of goods sold

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