Overhead can be classified according to function-wise as ________.

fixed o/h, variable o/h and semi-variable o/h
controllable o/h and uncontrollable o/h
manufacturing o/h, administration o/h and selling & distribution o/h
past cost and future cost

The correct answer is: C. manufacturing o/h, administration o/h and selling & distribution o/h

Overhead can be classified according to function-wise as:

  • Manufacturing overhead: This is the cost of production that is not directly attributable to a specific product or service. It includes costs such as indirect labor, indirect materials, and factory overhead.
  • Administration overhead: This is the cost of running the business that is not directly attributable to a specific product or service. It 512"> Subscribe on YouTube
includes costs such as salaries for administrative staff, rent for office space, and utilities.
  • Selling and distribution overhead: This is the cost of selling and distributing products or services. It includes costs such as salaries for sales staff, commissions, and shipping costs.
  • The other options are incorrect because they do not classify overhead according to function. Option A classifies overhead according to its behavior, as fixed, variable, or semi-variable. Option B classifies overhead according to its controllability, as controllable or uncontrollable. Option D classifies overhead according to its timing, as past cost or future cost.

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