When Actual Overhead Cost Exceeds the Overhead Applied, Overhead Is

question 58

True/False

When actual overhead cost exceeds the overhead applied, overhead is said to be underapplied.

---

Definitions:

Compounded Quarterly

Describes the process of adding interest to the principal sum of a deposit or loan, with this addition of interest occurring four times a year.

Quarterly

Occurring every three months or four times a year, often used in reference to financial reports or payments.

Interest Rate

The proportion of a loan or savings amount paid as interest to the lender or paid to the saver, usually expressed as an annual percentage.

Compensation Strategy

A company’s plan or approach towards designing and implementing payment structures and benefits for its employees.