The Balance of Overhead Over or Under Applied for the Period

question 24

Multiple Choice

The balance of overhead over or under applied for the period, if it is a material amount:

• A) is pro-rated over cost of goods sold, and finished goods
• B) is assigned to cost of goods sold
• C) is carried forward to become the opening balance in the next accounting period
• D) is pro-rated over cost of goods sold, work in process and finished goods

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Definitions:

Positive Entry

The introduction of new firms into a market, increasing competition and potentially leading to innovation and lower prices for consumers.

Current Account Entry

An item in the balance of payments that includes all imports and exports of goods and services, along with income received from or paid to foreign countries.

Current Account

A component of a country's balance of payments that encompasses the trade balance, net primary income, and secondary income.

Net Investment Income

The income generated from investments after deducting all related expenses, such as interest payments, fees, and taxes.