If Actual Overhead Costs Are Less Than the Amount of Overhead

question 52

True/False

If actual overhead costs are less than the amount of overhead applied to production,this indicates that manufacturing overhead is over-applied.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often receiving dividends before common shareholders.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits via dividends.