What is the main function of manufacturing overhead in accounting?

Manufacturing overhead is primarily concerned with capturing those costs that are necessary for the production process but cannot be directly traced to specific products. This category includes indirect materials, indirect labor, depreciation on equipment, utilities, and other expenses that support the manufacturing process.

When determining the cost of a product, it's essential to include not only the direct costs (like raw materials and direct labor) but also the manufacturing overhead to ensure a complete understanding of production costs. By assigning these indirect costs to products, a more accurate product cost can be established, allowing for better pricing, budgeting, and financial analysis. This comprehensive approach helps organizations understand the true cost of production and aids in decision-making processes related to pricing and operational efficiency.

The other options focus on aspects that do not directly relate to the essential role of manufacturing overhead in assigning costs that are vague or indirect in nature.