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.