Which statement best describes overhead costs?
A) Overhead costs are not incurred uniformly throughout the year.
B) Low production in one month would give rise to low unit overhead costs.
C) High production in one month would give rise to high unit overhead costs.
D) Overhead costs have a definite, identifiable relationship with units produced.

Question

Quizplus · Accepted Answer

Overhead costs are not incurred uniformly throughout the year and can vary based on factors such as seasonality, production volume, and changes in production processes. Therefore, it is not accurate to say that overhead costs have a definite, identifiable relationship with units produced or that low production in one month would give rise to low unit overhead costs.

Which Statement Best Describes Overhead Costs