Underapplied and Overapplied Overhead Is Not Usually Required to Be

question 58

Multiple Choice

Underapplied and overapplied overhead is not usually required to be adjusted in service costing systems. Why?

• A) It is immaterial.
• B) The costing system is not integrated with the accounting system.
• C) Underapplied and overapplied overhead has no impact on decision making.
• D) It does not affect the accuracy of the service costs.

---

Definitions:

Energized

Refers to a state in which an electrical component, circuit, or system is supplied with power and is operational.

Normally Open

Describes a switch or relay contact that is in a default open state, allowing current to flow only when the contact is actuated to close.

Normally Closed

A term referring to an electrical switch or circuit state where the contacts are closed (allowing current flow) when no actuating force is applied.

Electrical State

An electrical state refers to the condition of an electrical component or system, such as being charged, discharged, on, or off.