Which of the following is quite often not incremental?
A)Direct labor
B)Direct material
C)Variable manufacturing overhead
D)Fixed manufacturing overhead

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead costs are typically not incremental as they do not vary with changes in production levels or volume. These costs are considered fixed because they do not change, regardless of whether the company produces more or less. In contrast, direct labor and direct material costs are often incremental because they increase or decrease in proportion to the level of production. Variable manufacturing overhead costs may be incremental or non-incremental depending on whether they change with production volume.

Which of the Following Is Quite Often Not Incremental