The allocation of manufacturing overhead costs to products is difficult because

Question

The allocation of manufacturing overhead costs to products is difficult because
a. most products produced by a company are very similar so that distinguishing between the individual products becomes difficult.
b. many manufacturing overhead costs are period expenses and are thus not easily categorized in a particular production cycle.
c. since all manufacturing overhead costs are indirect expenses, it is not possible to identify any of them with a particular product.
d. it is often difficult to determine how much of a particular overhead cost is consumed by individual products.

Explanation / Answer

b. many manufacturing overhead costs are period expenses and are thus not easily categorized in a particular production cycle.

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