In a Process Costing System,overhead Costs Are Traced to Units

question 37

True/False

In a process costing system,overhead costs are traced to units of product as they are incurred.

---

Definitions:

Break-even Point

The point at which total cost and total revenue are equal, resulting in neither profit nor loss.

Break-even Sales

The amount of revenue required to cover total costs, both fixed and variable, at which point a business neither makes a profit nor suffers a loss.

Variable Cost

Overheads that move in sync with the volume of manufacturing or sales, covering labor and material costs.

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, and insurance.