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GAAP Permits Which of the Following Methods for Zeroing Out

Question 25

Multiple Choice

GAAP permits which of the following methods for zeroing out the overhead control account?


A) Correct the rates at year end.
B) Charge the under-applied or over-applied overhead to cost of goods sold.
C) Prorate the under-applied or over-applied overhead among the inventory accounts and cost of goods sold.
D) B and C only.
E) A, B and C

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