Normally, Managers Will Not See Many Fixed Overhead Spending Variances

question 139

Multiple Choice

Normally, managers will not see many fixed overhead spending variances because

• A)many fixed costs are contracted for or known ahead of time.
• B)fixed costs vary in proportion to activity, so differences do not normally arise.
• C)most fixed costs are allocated (such as depreciation), so no differences occur.
• D)actual fixed costs rarely differ from budgeted fixed costs.

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Sigmund Freud, an Austrian neurologist who founded the field of psychoanalysis, a form of psychotherapy that emphasizes the role of unconscious factors in personality and behavioral development.

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