Asked by Rachel Sawyer on Jul 09, 2024
Verified
The unitization of fixed overhead costs is useful from a control perspective.
Fixed Overhead Costs
Regular, unchanged costs incurred by a business, regardless of its level of production or activity, such as rent and salaries.
Control Perspective
An approach focusing on the monitoring and adjusting of processes and strategies to achieve desired outcomes or objectives.
- Compute variances for both fixed and variable manufacturing overhead costs.
Verified Answer
SA
Shahzaib AsherJul 14, 2024
Final Answer :
False
Explanation :
Unitization of fixed overhead costs can distort product costs and is not typically used for control purposes; instead, fixed overhead costs are often analyzed in total to assess spending and efficiency, not on a per-unit basis.
Learning Objectives
- Compute variances for both fixed and variable manufacturing overhead costs.
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