Effective planning of variable overhead costs means that managers must
A) increase the expenditures in the variable overhead budgets
B) focus on activities that add value for the customer and eliminate nonvalue-added activities
C) increase the linearity between total costs and volume of production
D) identify the product advertising requirements and factor those into the variable overhead budget

Question

Quizplus · Accepted Answer

Effective planning of variable overhead costs requires managers to focus on activities that add value for the customer and eliminate nonvalue-added activities. This helps to reduce costs and improve efficiency, resulting in increased profitability. Options A, C, and D do not accurately reflect effective planning of variable overhead costs.

Effective Planning of Variable Overhead Costs Means That Managers Must