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:

Repurchase

The act of buying back previously sold stock or securities by the company that issued them.

Involuntary

Actions or reactions occurring without conscious control or decision, often used in legal contexts to describe actions not done by one's own volition.

Fractional Shares

Smaller portions of a full share of stock, representing a piece of equity less than one full share.

Shareholder Derivative Action

A lawsuit brought by a company shareholder against the company's executives, directors, or other insiders, typically for breach of fiduciary duties.