All of the Following Statements Regarding Manufacturing Costs Are True

question 96

Multiple Choice

All of the following statements regarding manufacturing costs are true except:

• A) Direct material costs that increase in total with volume of production are called variable costs.
• B) When overhead costs don't vary with production, they are called fixed overhead.
• C) Overhead can be both variable and fixed.
• D) The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior.
• E) When overhead costs vary with production, they are called variable overhead.

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