The ________ approach carries the underallocated or overallocated amounts to overhead accounts in the following year.

Question

Quizplus · Accepted Answer

The approach described does not match any of the listed options. The write-off to cost of goods sold, adjusted allocation-rate, and proration approaches deal with underallocated or overallocated overhead within the same accounting period, not by carrying amounts to the following year.

The ________ Approach Carries the Underallocated or Overallocated Amounts to Overhead