At the end of each year,the underapplied or overapplied overhead appears as an adjustment to the Cost of Goods Sold amount on the Income Statement.

Question

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This statement is true. Underapplied or overapplied overhead is considered an adjustment to the Cost of Goods Sold on the income statement. It is necessary to adjust the costs associated with production in order to accurately calculate the company's net income.

At the End of Each Year,the Underapplied or Overapplied Overhead