Are overheads variable costs?

Question

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Frost 0 Comments

I think that overheads are not variable costs, right? I know that direct costs can be variable, fixed and semi-variable. What about the overheads?

1 Answer

score 0 · Answer 1 · 2012-12-02T22:55:53+00:00

Overheads are the costs that can not be fully traced to a cost object. They can be both variable and fixed. You will see both variable overhead costs and fixed overhead costs.