Normally,managers will not see many fixed overhead spending variances because
A)Many fixed costs are contracted for or known ahead of time.
B)Fixed costs vary in proportion to activity,so differences do not normally arise.
C)Most fixed costs are allocated such as depreciation,so no differences occur.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Fixed overhead costs are contracted for or known ahead of time, so there are usually no variances. These costs are generally committed to and cannot be changed easily, which is why they are referred to as fixed costs. Therefore, managers do not see many fixed overhead spending variances.

Normally,managers Will Not See Many Fixed Overhead Spending Variances Because