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.

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Definitions:

Carnations

A type of flower known for its distinct fragrance and variety of colors, commonly used in arrangements and bouquets.

Tariff

A tax imposed by a government on imported or exported goods to regulate trade and protect domestic industries.

Imports

Goods and services bought by residents of a country from foreign producers, representing an inflow of goods into the country.

Free Trade

An economic policy allowing unrestricted import and export of goods between countries without the imposition of tariffs, quotas, or other restrictions.