Question

Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once. a. Job order cost system b. Process cost system c. Underapplied overhead d. Overapplied overhead or. Period costs 1. Expenses of the current period. 2. Applied overhead is more than actual overhead incurred. 3. Typically used by companies that make custom products. 4. Typically used by companies whose products are indistinguishable from each other. 5. Applied overhead is less than actual overhead incurred.

Answer 1

Answer:

1. Expenses of the current period --> Period Cost

2. Applied overhead is more than actual overhead incurred -->

d. Overapplied overhead

3. Typically used by companies that make custom products -->

a. Job order cost system

4. Typically used by companies whose products are indistinguishable from each other. -->

b. Process cost system

5. Applied overhead is less than actual overhead incurred. -->

c. Underapplied overhead

Explanation:

1) as are not capitalzied throught an asset account are considered expense of the period

2) and 5) When we apply above then, there capitalization of cost that weren't incurred so we have to reduced.

When we apply below, we need to capitalize more

3) Job Order makes each job account for their materials and labor making more possible the itemization

4) process cost works with equivalent units to detemrinate the production of the period as it is constant the product from one bathc to another have no difference.