The flexible budget amount is added in to fixed overhead flexible budget variance to calculate _____________?
Correct answer: C. actual incurred cost
- A. incurred manufacturing
- B. incurred production cost
- C. actual incurred cost
- D. incurred labor cost
Explanation
A flexible-budget variance measures the difference between actual cost and the flexible-budget amount. Adding that variance to the flexible-budget amount reconstructs the actual incurred manufacturing cost.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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