Which of the Following Is Not an Example of a Variable

question 69

Multiple Choice

Which of the following is not an example of a variable cost for a manufacturer of bicycles?

• A)Number of tires
• B)Gallons of paint
• C)Wages for factory workers
• D)President of the company's salary

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Definitions:

Fixed Overhead Cost Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead incurred.

Variance Analysis

The process of examining differences between actual and budgeted/expected financial performance and investigating the causes.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level, providing a more useful tool for performance evaluation.

Standard Costs

Predetermined or estimated costs used to compare with actual costs, serving as a financial management tool for analyzing variances.