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

Question

Quizplus · Accepted Answer

Overhead costs are not incurred uniformly throughout the year, as they can vary based on factors such as seasonality, changes in production volume, and unexpected expenses. The other statements are incorrect: overhead costs do not necessarily have a direct relationship with units produced, and the level of production in a given month does not necessarily determine the level of overhead costs.

Which of the Following Statements About Overhead Costs Is Correct