Because support department costs are indirectly related to production, they are applied to products as part of overhead.

Question

Quizplus · Accepted Answer

Support department costs, such as maintenance and administration, do not directly contribute to the production of specific products but are necessary for the overall operation. Therefore, they are allocated to products as part of the overhead costs to ensure that the total cost of production is accurately reflected.

Because Support Department Costs Are Indirectly Related to Production, They