Which Method(s)for Dealing with Under/over Allocated Overhead Provides the Most

Multiple Choice

Which method(s) for dealing with under/over allocated overhead provides the most accurate inventory and cost of goods sold account balances when the amount is material?

A) proration approach
B) adjusted allocation-rate approach
C) immediate write-off to cost of goods sold
D) either proration or adjusted allocation-rate approach
E) either the proration approach or the immediate write-off to cost of goods sold