Which of the following is not a reason variable overhead costs might differ from the flexible budget costs?
A)Executives' salaries may increase or decrease.
B)The prices paid to acquire variable overhead items can increase or decrease.
C)Variable overhead items can be used more or less efficiently than planned.
D)Since variable overhead varies with production activity,if the company is less efficient with respect to that production activity,then variable overhead will be used more or less efficiently.

Question

Quizplus · Accepted Answer

The reason variable overhead costs might differ from the flexible budget costs is due to factors such as changes in the prices paid for variable overhead items or variation in their usage efficiency. However, the executives' salaries are not part of the variable overhead costs and are, therefore, not a reason why the actual variable overhead costs might differ from the flexible budget costs.

Which of the Following Is Not a Reason Variable Overhead