Knowledge Check 01 What is the term used when a company applies less overhead to production than it actually incurs? Misapplied Overapplied Unadjusted Underapplied Knowledge Check 02 The adjustment for overapplied overhead decreases cost of goods sold and decreases net operating income. decreases cost of goods sold and increases net operating income. increases cost of goods sold and decreases net operating income. increases cost of goods sold and increases net operating income. Knowledge Check 03 When all of a company's job cost sheets are viewed collectively they form what is known as a general ledger inventory job-order costing system subsidiary ledger