Asked by Kenya Greene on Jul 27, 2024
Verified
The fixed overhead budget variance is not controllable by managers since fixed costs are not controllable.
Fixed Overhead Budget Variance
The difference between the budgeted fixed overhead costs and the actual fixed overhead incurred.
Fixed Costs
Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, providing predictability to a business's expenses.
- Pinpoint and appraise the significance of variance aspects on economic performance.
Verified Answer
VR
Victoria RochelleJul 29, 2024
Final Answer :
False
Explanation :
The fixed overhead budget variance can be controllable by managers to some extent, as it involves comparing the actual fixed overhead costs to the budgeted amounts, and managers can influence spending and budgeting decisions.
Learning Objectives
- Pinpoint and appraise the significance of variance aspects on economic performance.