Since overhead costs are indirect costs,
A)they require some process of allocation.
B)they can be easily traced to production.
C)a predetermined overhead rate is not advantageous.
D)they cannot be allocateD.

Question

Quizplus · Accepted Answer

Overhead costs are not directly related to the production of a specific product or service, so they need a process of allocation to assign them to the relevant department or product. This process can be done using predetermined overhead rates or other methods of allocating costs, depending on the company's accounting system.

Since Overhead Costs Are Indirect Costs