Manufacturing Costs Are Considered to Be Fixed Costs

question 1

True/False

Manufacturing costs are considered to be fixed costs.

---

Definitions:

Underapplied Manufacturing Overhead

Occurs when the allocated manufacturing overhead costs are less than the actual overhead costs.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred during a period.

Direct Materials Cost

The total cost of raw materials directly involved in the manufacturing of a product.

Underapplied Manufacturing Overhead

A scenario in which the overhead costs assigned to manufacturing are lower than the overhead costs that were actually incurred.