Manufacturing overhead costs are also referred to as ________.
A) indirect manufacturing costs
B) prime costs
C) direct manufacturing costs
D) direct material

Question

Quizplus · Accepted Answer

Manufacturing overhead costs are those indirect costs that are incurred when producing a product but cannot be directly traced to the product. Examples of manufacturing overhead costs include rent, utilities, depreciation, and salaries for production supervisors. These costs are also referred to as indirect manufacturing costs because they cannot be directly attributed to a specific product or production run.

Manufacturing Overhead Costs Are Also Referred to as ________