Fixed overhead costs are
A)best controlled on a unit-by-unit basis of products produced.
B)mostly incurred to provide the capacity to produce and are best controlled on a total basis at the time they are originally negotiated.
C)constant on a per-unit basis at all different activity levels within the relevant range.
D)best controlled as to spending during the production process.

Question

Quizplus · Accepted Answer

Fixed overhead costs are mostly incurred to provide the capacity to produce and are best controlled on a total basis at the time they are originally negotiated. These costs do not change with the level of production, and therefore controlling them on a unit-by-unit basis may not be effective. It is important to negotiate these costs effectively and monitor them on a total basis.

Fixed Overhead Costs Are