What period do managers make the most of the decisions that determine levels of fixed overhead costs to be incurred?

Question

Quizplus · Accepted Answer

Managers typically make decisions about fixed overhead costs at the start of the budget period when they are developing the budget for the upcoming period. This is when they can estimate the amount of resources that will be needed to achieve the company's goals and objectives, and make decisions about what level of fixed costs will be necessary to support those activities. While some decisions may be made earlier or later, the start of the budget period is generally the most critical time for making decisions about fixed overhead costs.

What Period Do Managers Make the Most of the Decisions