Which method(s)for dealing with under/over allocated overhead provides the most accurate inventory and cost of goods sold account balances when the amount is material?

Question

Quizplus · Accepted Answer

Both the proration and adjusted allocation-rate approaches provide more accurate inventory and cost of goods sold balances when the amount is material, as they allocate the overhead variance proportionally across the accounts affected.

Which Method(s)for Dealing with Under/over Allocated Overhead Provides the Most