The Most Widely Used Approach to Disposing of Overhead Variances

Multiple Choice

The most widely used approach to disposing of overhead variances is ________.

A) to allocate it between finished goods inventory, work-in-process inventory and direct materials inventory
B) to allocate it between cost of goods sold, finished goods inventory and work-in-process inventory
C) to allocate it between cost of goods sold, finished goods inventory and direct materials inventory
D) immediate write-off