If the amount of overapplied or underapplied manufacturing overhead is small,most companies will generally make an adjustment to

Question

Quizplus · Accepted Answer

When the amount of overapplied or underapplied manufacturing overhead is small, companies typically adjust the Cost of Goods Sold to reflect the actual overhead costs incurred. This is because it is the most practical and straightforward method for small discrepancies.

If the Amount of Overapplied or Underapplied Manufacturing Overhead Is