Factory Overhead Is Charged to Expense as It Is Incurred

question 86

True/False

Factory overhead is charged to expense as it is incurred because it is a period cost.

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Definitions:

Scienter

The knowledge of the wrongfulness of an act or the intent to commit an act that is forbidden by law.

SEC Rule 10b-5

SEC Rule 10b-5 is a regulation enacted by the Securities and Exchange Commission to prevent fraud in securities transactions, including misrepresentation or omission of crucial information.

Sarbanes-Oxley Act

A U.S. law enacted to protect investors by improving the accuracy and reliability of corporate disclosures.

Chief Financial Officers

Senior executives responsible for managing the financial actions of a company, including financial planning, risk management, and reporting.