1. What is the term used when a company applies less overhead to production than it actually incurs?
a. Misapplied
b. Overapplied
c. Unadjusted
d. Underapplied
e. Knowledge
2. The adjustment for overapplied overhead .
a. decreases the cost of goods sold and decreases net operating income.
b. decreases the cost of goods sold and increases net operating income.
c. increases the cost of goods sold and decreases net operating income.
d. increases the cost of goods sold and increases net operating income. 3. When all of a company’s job cost sheets are viewed collectively they form what is known as a .
a. general ledger
b. inventory job-order
c. costing system
d. subsidiary ledger