At the start of a budget period,management will have made most of the decisions that determine the level of ________________ to be incurred.

Question

Quizplus · Accepted Answer

Fixed overhead costs are predetermined expenses that management can plan for at the start of the budget period. Direct labor costs and direct materials costs are dependent on production levels and cannot be accurately determined at the start of the budget period. Variable overhead costs can fluctuate based on production levels and other factors, making them difficult to predict.

At the Start of a Budget Period,management Will Have Made