The Immediate Write-Off of Overhead Variances Is Used Because ________

question 105

Multiple Choice

The immediate write-off of overhead variances is used because ________.

• A) it is simpler
• B) the company has probably sold most of the goods produced during the period so prorating the variance to inventory accounts would not produce materially different results
• C) the extra overhead costs result from inefficiencies in the current period and therefore do not represent assets
• D) all of the above

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Definitions:

Electrical Cord

A flexible cable comprised of one or more electrical conductors, typically encased in insulation, used to transmit power.

Nodes of Ranvier

Nodes of Ranvier are gaps in the myelin sheath of nerve fibers where axonal membranes are exposed, enabling rapid transmission of nerve impulses.

Myelin

A fatty white substance that surrounds the axon of some nerve cells, forming an electrically insulating layer that speeds the transmission of nerve impulses.

Axon

A long, slender projection of a nerve cell that typically conducts electrical impulses away from the neuron's cell body.