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:

Human Resources

The department within an organization that deals with the hiring, management, and development of employees.

Demand

The desire and ability of consumers to purchase goods and services at a given price.

Markov Analysis

Forecast of a firm’s future human resource supplies, using transitional probability matrices reflecting historical or expected movements of employees across jobs.

What If

Refers to a method of questioning or analysis used to explore possibilities, predict outcomes, or understand scenarios hypothetically.