The Amount of Cash Paid Out for Overhead Each Period

Multiple Choice

The amount of cash paid out for overhead each period does not equal the total overhead costs incurred during the period because:

A) overhead expenses rarely require cash payments.
B) overhead expenses only require cash payments for factory rent.
C) overhead expenses only require cash payments for indirect materials.
D) depreciation expense does not require a cash payment.
E) None of the answer choices is correct.