All of the following statements regarding manufacturing costs are except:
A) Direct material costs that increase with production are called variable costs.
B) The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior.
C) When overhead costs vary with production, they are called variable costs.
D) When overhead costs don't vary with production, they are called fixed overhead.
E) Overhead can be both variable and fixed.

Question

Quizplus · Accepted Answer

The reporting of fixed and variable costs separately is actually helpful to managers in analyzing cost behavior, as it allows them to better understand the cost structure of their products and make informed decisions about pricing and production levels.

All of the Following Statements Regarding Manufacturing Costs Are Except