Which Statement Is Correct About Overhead

question 91

Multiple Choice

Which statement is correct about overhead?

• A)Fixed overhead is expensed under absorption costing.
• B)Fixed overhead is never capitalized.
• C)Variable overhead is always capitalized.
• D)Fixed overhead is capitalized under absorption costing.

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Definitions:

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, often used to determine the price of shares in a mutual fund or ETF.

Year-End Assets

The total value of all assets held by an entity at the end of a financial year.

Liabilities

Financial obligations or debts that a company or individual owes to others, which need to be settled over time by transferring economic benefits.

Closed-End Funds

A type of investment fund with a fixed number of shares, traded on the stock exchange, unlike open-end funds which continuously issue new shares.