Question

Which of the following is true? Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor. The departmental overhead rate is not usually based on measures closely related to production volume. The departmental overhead rate is most accurate in assigning overhead costs that are not driven by production volume. Allocated overhead costs will be the same no matter which allocation method is used. When cost analysts are able to logically trace cost objects to costs, costing accuracy is improved.

Answer 1

Answer:

Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

Explanation:

An overhead cost is not directly defined, to be that of material, or labor, or any other unit, overhead include, many factors, electricity usage, machine hours usage, water usage, or the capacity utilization of machinery, and various other factors. Since its computation and allocation is not clear many a times, a single overhead like that of electricity, has many factors, ideal usage of electricity, or machine hours used in production or simply the total cost of overheads for that month or building or etc: and its utilization. In short, to conclude we can state that overhead costs are complex in nature.

All other options are false.

Final Answer

Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.