If the Applied Overhead Is More Than Actual Overhead,which of the Following

question 30

Multiple Choice

If the applied overhead is more than actual overhead,which of the following is part of the entry?

• A) A credit to the Overhead account
• B) A debit to the Overhead account
• C) A debit to the Cost of Goods Sold account
• D) A debit to the Work in Process Inventory account

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Definitions:

Outsourcing

The business practice of hiring third parties to perform services or create goods that were traditionally performed in-house.

Make or Buy

A decision-making process used by companies to determine whether they should produce goods internally or purchase them from an external supplier.

Indirect Spend

Expenses incurred for materials, services, and maintenance that do not directly contribute to the production of goods.

Direct Spend

Expenses directly tied to the production of goods or services, such as raw materials and labor.