Which of the following is one of the controversial points with manufacturing overhead ?: Select one:

a. They are easy to link and measure with the product

b.There are fluctuations in the level of activity as well as in the indirect cost itself

c.They generally have a single cost cause, which makes it easy to calculate an indirect cost allocation rate.

d.At the time of requiring to compute an indirect cost rate, you have all the information necessary to do so

Indirect costs differ from direct costs: Select one:

a. They are important and essential to the product or service but difficult to measure.

b.Because individually each indirect cost category is not significant, the costs are listed individually, as is the case with direct costs.

c.It's easy to keep track of indirect costs to determine how much is charged on the product or service; therefore they behave the same as direct costs

d.There are no differences between the accounting treatment of direct and indirect costs.

When calculating the denominator level variation (Denominator Volume Variance or Production Variance) using the cost driver, the current cost driver is used to represent the current level of activity. Select one:

a. false

b.True