When we use an annual overhead rate consistently throughout the year for product costing, without altering it month to month, this is called a(n) ________

A) direct costing system
B) absorption costing system
C) normal costing system
D) constant costing system

C

Business

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When Jerry took delivery of his brand new Karuaf automobile, he was filled with pleasure and excitement as Karuaf is a very expensive brand. This is an example of the__________effect associated with the price-quality relationship

Fill in the blanks with correct word.

Business

Lawrence Sales Corporation offers warranties on all their electronic goods

Warranty expense is estimated at 3% of sales revenue. In 2017, the company had $603,000 in sales. In the same year, Lawrence Sales replaced defective goods with a cost of $16,500. Which of the following is the entry needed to record the replacement of the defective goods? A) Estimated Warranty Payable 16,500 Merchandise Inventory 16,500 B) Warranty Expense 16,500 Estimated Warranty Payable 16,500 C) Warranty Expense 18,090 Estimated Warranty Payable 18,090 D) Warranty Expense 18,090 Merchandise Inventory 18,090

Business