allocating the variance to the inventory and cost of goods sold accounts 635718

1. You should not dispose of the difference between standard and actual overhead costs by:

a. Charging it to the cost of goods sold

b. Retaining it in an overhead cost pool for the next reporting period

c. Charging it to jobs

d. Allocating the variance to the inventory and cost of goods sold accounts

2. You should close a job record promptly in order to:

a. Keep from charging additional expenses to it

b. Encourage its use for fraudulent reporting

c. Prevent overhead from being charged to it

d. Both a. and c.

3. Direct labor may be fraudulently recorded in overhead in order to:

a. Defer its recognition as an expense

b. Accelerate its recognition as an expense

c. Record it as a liability

d. Record it as an equity line item