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:

Social Cognition

Refers to how individuals process, store, and apply information about other people and social situations, influencing their behavior in social contexts.

Clipboard

A hardboard with a clip at the top for holding papers in place, used for writing on without a desk.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Existing Schemas

Pre-established cognitive frameworks or concepts that help individuals organize and interpret information based on past experiences.