When Using a Standard Costing System,which of the Following Should

question 24

Multiple Choice

When using a standard costing system,which of the following should be recorded when variable overhead is applied during the period?

• A)Debit manufacturing overhead for the actual overhead costs and credit work in process inventory using a predetermined variable overhead rate
• B)Debit work in process inventory for the actual overhead costs and credit manufacturing overhead using a predetermined variable overhead rate
• C)Credit manufacturing overhead using the standard quantity of the application base and debit work in process inventory using a predetermined variable overhead rate
• D)Credit manufacturing overhead using the actual quantity of the application base and debit work in process inventory using a predetermined variable overhead rate

---

Definitions:

HHI

A measure of market concentration used to determine the competitiveness of a market. Also known as the Herfindahl-Hirschman Index.

HHI

The Herfindahl-Hirschman Index, a measure of market concentration to assess the level of competition within an industry.

Herfindahl-Hirschman Index

A measure used to quantify the level of competition within an industry, calculated by squaring the market share of each firm and summing the total.

Market Share

The percentage of an industry's sales that a particular company controls.