Describe Why Companies That Use Job Order Costing Have Over-/Or

question 145

Essay

Describe why companies that use job order costing have over-/or under-applied overhead and list the two methods used to dispose of any over-/or under-applied overhead?

---

Definitions:

Par Value

The face value of a bond or stock, typically the value printed on the certificate, which does not necessarily reflect its market value.

Treasury Bond

Long-term government debt securities issued by the U.S. Department of the Treasury, with maturity periods typically ranging from 20 to 30 years, considered low-risk investments.

Annual Coupon

The yearly interest payment made by a bond issuer to its bondholders, usually fixed at the time of issuance.

Yield to Maturity

The total expected return on a bond if held until its maturity date, considering all payments from interest and principal, expressed as an annual rate.