Which of the following is an example of a major cost component of variable overhead?

Question

Quizplus · Accepted Answer

Indirect material is an example of a major cost component of variable overhead. Direct material and direct labor are considered part of the cost of goods sold (COGS) and are not included in the calculation of overhead costs. Variable overhead costs, on the other hand, can vary with production volume and may include costs such as utilities, supplies, and maintenance. Indirect material refers to materials used in production that are not directly incorporated into the final product, such as lubricants or cleaning supplies.

Which of the Following Is an Example of a Major