Variable Costs Are

question 51

Multiple Choice

Variable costs are:

• A)costs that don't depend on the quantity of output produced.
• B)costs that depend on the quantity of output produced.
• C)one-time costs.
• D)usually sunk and thus irrelevant.

---

Definitions:

Indirect Labor

Labor costs associated with the production process that cannot be directly traced to specific products or services, such as maintenance or supervision.

Overapplied Overhead

A situation in accounting where the estimated overhead costs are higher than the actual costs incurred.

Underapplied Overhead

A situation where the allocated manufacturing overhead cost is less than the actual manufacturing overhead cost incurred.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production.