Which of the following is a key point to investigate while analyzing overhead costs?
A)whether costs incurred are product costs or period costs
B)whether direct materials prices are higher than standards
C)whether certain overhead costs are controllable or not
D)whether labor costs can be reduced

Question

Quizplus · Accepted Answer

Analyzing overhead costs should involve determining which costs are controllable or not. This will help identify areas where cost reductions can be made without affecting the quality of the product or service. A and B are important considerations but not key points in analyzing overhead costs. D is not relevant to overhead costs, as it relates to labor costs specifically.

Which of the Following Is a Key Point to Investigate