Question

Overhead costs: A. Cannot be traced to cost objects in a cost-effective manner, but are instead allocated to cost objects.B. Cannot be allocated to cost objects.C. Are always variable costs.D. Are only incurred by manufacturing companies.

Answer 1

The correct answer is a) Cannot be traced to cost objects in a cost-effective manner, but are instead allocated to cost objects

Step-by-step explanation:

Overhead costs are not easily identified with any particular product or service. They are considered to be a continuing cost of doing business