An energy, machine maintenance, indirect materials and engineering support are considered as
A. variable overhead cost
B. fixed overhead cost
C. fixed batch cost
D. variable batch cost
Answer: Option A
Solution (By Examveda Team)
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.This Question Belongs to Management >> Management Accounting
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