When not enough overhead cost is charged to products as they are made,the result is

Name: When not enough overhead cost is charged to products as they are made,the result is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If not enough overhead cost is charged to products, then there will be underapplied overhead. This means that the actual overhead cost incurred is greater than the overhead cost allocated to the products. This can result in an overstatement of Cost of Goods Sold and an understatement of inventory cost.

When Not Enough Overhead Cost Is Charged to Products as They