The variable overhead flexible budget variance is added to flexible budget amount to calculate _____________?
Correct answer: A. actual cost incurred
- A. actual cost incurred
- B. fixed cost incurred
- C. variable cost incurred
- D. manufacturing cost incurredFinance
Explanation
The variable-overhead flexible-budget variance reconciles the flexible-budget amount with the actual variable overhead incurred. Adding it to the flexible-budget amount therefore gives actual cost incurred.
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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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