When Management Is Investigating Overhead Variances, They Need to Further

question 54

True/False

When management is investigating overhead variances, they need to further determine whether cost increases were controllable or uncontrollable.

---

Definitions:

Sales Commissions

Fees paid to salespersons for selling products or services, often a percentage of the sale amount.

Shipping Expenses

Costs incurred by a company to transport its products to customers, often classified as part of operating expenses.

Sales Manager's Salary

The compensation paid to the individual responsible for directing and managing a company's sales team and strategies.

Flexible Budget

A financial planning tool that can be modified based on actual operating figures, providing a more relevant comparison of actual to budgeted performance.