All of the Following Statements Regarding Manufacturing Costs Are True

Multiple Choice

All of the following statements regarding manufacturing costs are true except:

A) Direct material costs that increase in total with volume of production are called variable costs.
B) When overhead costs don't vary with production, they are called fixed overhead.
C) Overhead can be both variable and fixed.
D) The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior.
E) When overhead costs vary with production, they are called variable overhead.