The ________ Approach Adjusts Individual Job-Cost Records to Account for Underallocated

question 250

Multiple Choice

The ________ approach adjusts individual job-cost records to account for underallocated or overallocated overhead.

• A)proration
• B)adjusted allocation-rate
• C)write-off to cost of goods sold
• D)Both A and B are correct.

---

Definitions:

Milk Producers

Entities or individuals engaged in the production and supply of milk.

Coffee Shops

Retail establishments that primarily sell coffee, along with other beverages and light snacks, often serving as social hubs in communities.

Normal Good

A type of good for which demand increases when consumer income increases, and decreases when consumer income decreases, assuming all other factors remain constant.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.