Manufacturing overheads is such cost that consists of many types of costs, and is also directly traceable to the number of units produced. Therefore, the options B and D hold true.
What is the significance of manufacturing overheads?
Manufacturing overheads can be referred to or considered as the overheads that are incurred by a producer in the process of manufacturing the units to be sold in the business. These costs are incurred for the purpose of profit-making.
The overheads of manufacturing consist of different types of costs, and division of the incurred overheads by the total manufactured units will give an idea of the per-unit cost for the firm.
Therefore, the options B and D hold true and state regarding the significance of manufacturing overheads.
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