The ________ Approach Carries the Underallocated or Overallocated Amounts to Overhead

question 88

Multiple Choice

The ________ approach carries the underallocated or overallocated amounts to overhead accounts in the following year.

• A) adjusted allocation-rate
• B) proration
• C) write-off to cost of goods sold
• D) None of these answers are correct.

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Definitions:

Expropriate

The act of a government taking private property for public use, usually with compensation to the owner.

Fee Simple Absolute

A type of freehold ownership where the owner has the maximum possible rights over the property, permitting them to use it, sell it, or bequeath it under the law.

Real Property

Land and anything permanently attached to the land, such as buildings, which can be contrasted with personal property.

Personal Property

Assets or belongings that are not permanently attached to, or part of, real estate.