Spencer Company had overapplied factory overhead of $5,00 . last year. Which of the following statements is not true?
a. A higher level of production may have been achieved than budgeted for.
b. The Work in Process account was overcharged for the costs of factory overhead incurred during the period.
c. The actual factory overhead expenses may have been less than budgeted for the operating level achieved.
d. Assuming the amount is not material enough to distort net income, Cost of Goods Sold should be increased by this amount.
d
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Indicate whether the statement is true or false
Which of the following statements about the decomposition method is/are false?
A) The process of "deseasonalizing" involves multiplying by a seasonal index. B) Dummy variables are used in a regression model as part of an additive approach to seasonality. C) Computing seasonal indices is the first step of the decomposition method. D) Data is "deseasonalized" after the trend line is found. E) Decomposition can involve additive or multiplicative methods with respect to seasonality.