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Travka [436]
4 years ago
11

When overapplied / underapplied overhead is prorated, the basis for proration is:?

Business
1 answer:
spin [16.1K]4 years ago
7 0
Proration occurs because it is impossible to accurately estimate the future overhead costs and production activity; it is either the overhead is over applied or under applied. The variance will have to be adjusted for at the end of the financial year.
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The correct option is D.

Subtract the loss from net income.

<h3>What is Cash Flow?</h3>

The volume of money a business brings in and expends is known as cash flow. Revenues from sales are used by businesses to pay expenses.

  • In accounting, the initial net cash flow that is recorded during all firm operational operations is calculated using the indirect technique of estimating or computing cash flow.
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I understand that the question you are looking for is:

When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper disposition of a loss on disposal of equipment? Multiple Choice

A. Add the loss to net income.

B. Disregard the loss because it relates to a financing activity.

C. Disregard the loss because it relates to an investing activity.

D. Subtract the loss from net income.

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The answer to your question is systems analysts. 
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________ products are products whose demands are positively related and as such, they rise or fall together.
Free_Kalibri [48]

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The answer is Complementary!

Explanation:

Complementary products are products whose demands are positively related and as such, they rise or fall together.

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D

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