Consider the treatment of the overhead allocation when you evaluate a project.Which of the following statements represents best practice?

Overhead should be included in the analysis because it represents costs that would have been incurred anyway.

Overhead should not be included if it represents costs that are not incremental to the plant renovations.

Overhead should not be included because it represents costs that are likely to increase if the plant renovations are initiated.

Overhead should be included in the analysis because it is mandated by the corporate manual.