Which Statement Is Not Correct About Overhead

question 34

Multiple Choice

Which statement is not correct about overhead?

• A)Fixed overhead is capitalized under absorption costing.
• B)Fixed overhead is expensed under variable costing.
• C)Variable overhead is expensed under both absorption and variable costing.
• D)Both fixed and variable overhead are capitalized under absorption costing.

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Definitions:

Private Equity Fund

A type of investment fund that pools money from investors to acquire stakes in private companies with the aim of realizing a profit through future sales or public offerings.

Market Securities

Financial instruments, such as stocks and bonds, that are traded in financial markets.

Private Placements

Sale of securities to a small number of investors.

Debt Capital

Financing acquired through borrowing that must be repaid at a later date, typically with interest.