All of the following statements regarding manufacturing costs are true except:
A)Direct material costs are traceable to products.
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 statement "The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior" is false. Managers need to know the fixed and variable components of costs to understand how costs behave at different levels of production and to make decisions about pricing and profitability. The other statements are true.

All of the Following Statements Regarding Manufacturing Costs Are True