Start learning →

Production costs that cannot economically be traced to material or labour are grouped as manufacturing:

AOrdering
BOverhead
COwnership
DOutsourcing
Answer & Solution
Correct answer: B. Overhead
1. Tracing them is not worth the effort. 2. They still belong to production. 3. They are manufacturing overhead. _Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._
Practise this question with Quill — CMA (IMA) →

Keep practising Cost Classification

Browse all Cost Classification questions for CMA (IMA), or explore more Accounting topics.

Start a Cost Classification lesson →
Related questions
Costing bingoType the numberSort the cost wordsProduct or periodSlice the costing wordsRun the costing gatesPop the cost behavioursCatch the product costs