Mixed Costs, by Definition, Contain Both

question 69

Multiple Choice

Mixed costs, by definition, contain both

• A) product and period costs.
• B) fixed and variable costs.
• C) direct and indirect costs.
• D) Controllable and no controllable costs.

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Definitions:

Variable Overhead Efficiency Variance

A measure of the difference between the expected variable overhead based on standard costs and the actual variable overhead incurred.

Flexible Budget

A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.

Manufacturing Overhead

The sum of all costs involved in the production process other than direct materials and labor, such as utilities and rent for the manufacturing facilities.

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of units produced, multiplied by the standard fixed overhead rate.