Mixed Costs Are Comprised of Both Fixed Costs and Variable

question 69

True/False

Mixed costs are comprised of both fixed costs and variable costs, and as a result, mixed costs increase proportionately with an increase in activity level.

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Definitions:

Underapplied Manufacturing Overhead

The situation where the actual manufacturing overhead costs are higher than the overhead costs allocated to products.

Cost of Goods Sold

An accounting term representing the direct costs linked to the production of goods sold by a company, including both materials and labor.

Overapplied Manufacturing Overhead

A case where the estimated costs for manufacturing overhead outstrip the actual overhead expenditures.

Underapplied Manufacturing Overhead

Occurs when the actual manufacturing overhead costs are higher than the manufacturing overhead assigned to goods produced.