All of the following statements regarding manufacturing costs are true except:
A)Direct material costs that increase in total with volume of 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 overhead.
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 helpful to managers in analyzing cost behavior as it allows them to understand the cost structure of the business and make informed decisions about pricing, product mix, and cost reduction strategies.

All of the Following Statements Regarding Manufacturing Costs Are True