Budgeting for manufacturing overhead is the easiest of total product costs to calculate as its cost behavior is fixed.

Question

Quizplus · Accepted Answer

Budgeting for manufacturing overhead is not always fixed as it may have some variable costs involved, such as utility expenses or repairs and maintenance. Therefore, it may require some level of estimation and analysis to determine the accurate budget for manufacturing overhead.

Budgeting for Manufacturing Overhead Is the Easiest of Total Product