Which Type of Cost Is Does Not Change as the Quantity

question 153

Multiple Choice

Which type of cost is does not change as the quantity of output produced changes?

• A) total cost
• B) average cost
• C) fixed cost
• D) marginal cost

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Definitions:

Overhead Controllable Variance

Overhead Controllable Variance refers to the difference between the actual indirect operational expenses incurred and the budgeted or expected overhead costs that could be influenced by management decisions.

Total Overhead Variance

The difference between the actual overhead incurred and the standard overhead assigned to production.

Overhead Variances

The difference between actual overhead costs and the standard (or expected) overhead costs for a period.

Standard Costing System

An accounting system that uses standard costs instead of actual costs for recording costs of inventory and cost of goods sold, tracking variances.