Final answer:Overhead includes both manufacturing and nonmanufacturing costs underAbsorption costing.Costs can be decomposed into fixed and variable costs, with fixed costs remaining static regardless of the level ofproduction.Explanation:In reference to your question, overhead includes both manufacturing and nonmanufacturing costs underAbsorption costing.This is because both types of costs are significant in producing a good or service and absorption costing considers all costs involved.We can decompose costs into fixed and variable costs. Fixed costs are the costs of the fixed inputs (e.g., capital). These do not change in the short run, therefore fixed costs are expenditures that do not change regardless of the level of production. An example is the rent on a factory or a retail space. Once you sign the lease, the rent is the same regardless of how much you produce. Fixed costs can also include the cost of machinery or equipment to produce the product, research and development costs to develop new products, even an expense like advertising to popularize a brand name.Learn more about Absorption Costing here:brainly.com/question/39228979#SPJ4...

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