Which one of the following is true about under- or over-applied overhead at the end of a particular year?

Question

Quizplus · Accepted Answer

Under- or over-applied overhead is often adjusted by combining it with the cost of goods sold at the end of the accounting period. This method simplifies the adjustment process by directly affecting the income statement, rather than altering the costs of individual jobs or carrying the balance into future periods.

Which One of the Following Is True About Under- or Over-Applied