Which of the Following Statements Is True for a Standard

question 85

Multiple Choice

Which of the following statements is true for a standard cost system?

• A) Applied fixed manufacturing overhead is recorded as a debit to the manufacturing overhead account.
• B) Overapplied fixed overhead is always debited to cost of goods sold.
• C) Underapplied fixed overhead is always credited to finished goods inventory.
• D) Applied fixed manufacturing overhead is recorded as a debit to the work in process inventory account.

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Definitions:

Decision-making Biases

Systematic errors in thinking that affect the decisions and judgments that people make.

Persuasive Argument Theory

A theory suggesting that the process of persuasion involves the presentation of arguments, which leads to attitude change when the arguments are received and accepted by an individual.

Actor-observer Difference

A cognitive bias where people tend to attribute their own actions to external situations while attributing others' actions to their personalities or dispositions.

Bias

A tendency to lean in a certain direction, often unfairly, in thought or decision, usually leading to a prejudiced outcome.