The most widely used approach to disposing of overhead variances is _____.
A)proration
B)to allocate it between cost of goods sold and finished goods inventory
C)immediate write-off
D)to capitalize it as a cost of finished goods inventory

Question

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The most widely used approach to disposing of overhead variances is the immediate write-off to cost of goods sold, as it simplifies accounting and reflects the actual cost incurred in the period.

The Most Widely Used Approach to Disposing of Overhead Variances