Which of the Following Is TRUE About Fixed Overhead Cost

question 128

Multiple Choice

Which of the following is TRUE about fixed overhead cost?

• A)Fixed overhead cost should be unitised for planning purposes.
• B)Fixed overhead costs are unaffected by the degree of operating efficiency in a given budget period.
• C)Fixed overhead costs never have any unused capacity.
• D)Both A and B are correct.

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Definitions:

Dominant Purpose

The primary intent or main objective behind an action or decision, especially in legal contexts to determine the predominant reason.

Ethical Problems

Situations or issues requiring a choice between actions that must be evaluated as right or wrong based on moral principles.

Parole and Probation

Systems of supervised release from prison (parole) or alternative sentencing options (probation) that aim to rehabilitate offenders.

Probation Officer

A law enforcement official responsible for supervising offenders who are under probation instead of serving time in prison.