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.

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