Overhead costs:
A)Are directly related to production.
B)Can be traced to units of product in the same way that direct materials can.
C)Cannot be traced to units of product in the same way that direct labor can.
D)Are period costs.
E)Include only fixed costs.

Question

Quizplus · Accepted Answer

Overhead costs cannot be directly traced to units of product in the same way that direct labor or direct materials can. They are indirect costs related to production, such as utilities or rent for the production facility, and are allocated to products based on a predetermined overhead rate.

Overhead Costs