Factory overhead is an example of a
A)mixed cost.
B)fixed cost.
C)variable cost.
D)irrelevant cost.

Question

Quizplus · Accepted Answer

Factory overhead is a mixed cost because it includes both fixed and variable elements. Fixed costs include expenses such as rent, property taxes, and insurance, while variable costs include items such as electricity, water, and materials. Therefore, the total cost of factory overhead varies depending on the level of production.

Factory Overhead Is an Example of a