After Posting All Actual Factory Overhead and Applying Factory Overhead

question 220

Multiple Choice

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

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

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Definitions:

Social Sustainability

The ability of a society to develop processes and structures which not only meet the needs of its current members but also support the ability of future generations to maintain a healthy community.

Just-In-Time (JIT)

An inventory management strategy that aims to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Multiple Sourcing

A procurement strategy where a company uses several suppliers for a certain component or product to reduce dependency on a single source.

Request for Proposal (RFP)

A document issued by a company asking for detailed proposals from potential suppliers or contractors for a specific project or service.