Which of the following types of costs is an allocated cost based on the use of the plant,equipment,and other fixed expenses needed to run the production operation?
A)variable costs
B)manufacturing overhead costs
C)corporate overhead costs
D)research and development expenses
E)marketing sales and expenses

Question

Quizplus · Accepted Answer

Manufacturing overhead costs are indirect costs that cannot be directly traced to the production of a specific product or service. They include fixed costs such as rent, utilities, depreciation of equipment, and salaries of production supervisors. These costs are allocated to products based on activity levels, such as machine hours or direct labor hours, because they are necessary to keep the production operation running.

Which of the Following Types of Costs Is an Allocated