Cost behavior for variable overhead is more difficult to predict than the behavior of direct materials or direct labor cost for all the following reasons except:

a. The variable portion of overhead must first be separated from the fixed portion.

b. Multiple cost drivers are usually involved with variable overhead.

c. Direct material and direct labor contain no semi-variable component.

d. Variable overhead is a relatively small part of total overhead.

d. Variable overhead is a relatively small part of total overhead.

Business

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Indicate whether this statement is true or false.

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