Q195
An energy, machine maintenance, indirect materials and engineering support are considered as
A.
variable overhead cost
AnswerB.
fixed overhead cost
C.
fixed batch cost
D.
variable batch cost
Answer: Option A
Solution
Answer: Option A
Solution:
An energy, machine maintenance, indirect materials and engineering support are considered as variable overhead cost. Variable overhead costs tend to be higher when a business is engaged in a greater number of transactions, a higher level of production, or other situations in which more business events take place. The opposite of fixed overhead costs such as payroll and insurance, which generally remain static.