For planning and control purposes, fixed overhead is NOT included in the standard cost per unit because:
A)it is incurred based on the number of units produced.
B)the number of units produced do not vary from period to period.
C)it can best be controlled on a lump-sum basis.
D)of all of the above

Question

Quizplus · Accepted Answer

Fixed overhead is not included in the standard cost per unit because it does not vary with the number of units produced and is best controlled on a lump-sum basis, rather than on a per-unit basis.

For Planning and Control Purposes, Fixed Overhead Is NOT Included