Which Statement Is Correct About Overhead

question 21

Multiple Choice

Which statement is correct about overhead?

• A)Fixed overhead is capitalized under absorption costing.
• B)Fixed overhead is capitalized under variable costing.
• C)Variable overhead is always expensed.
• D)Selling costs are part of fixed overhead.

---

Definitions:

Liquidated Damage Clause

A provision in a contract specifying a predetermined amount of damages to be paid if one party breaches the agreement.

Specific Performance

A legal remedy whereby a court orders a party to perform a specific act, often pertaining to fulfilling a contract.

Personal Services

Services provided directly to individuals based on personal skill or expertise.

Unique Goods

Items that are distinct or unusual in some way, often making them irreplaceable or hard to replicate.