Budgeted fixed overhead is the basis for controlling fixed overhead because
A) it provides the benchmark against which actual expenditure is compared.
B) fixed overhead does not change as production activity varies.
C) budgeted fixed overhead is the same at all activity levels in the flexible budget.
D) All of the given answers

Question

Quizplus · Accepted Answer

Budgeted fixed overhead serves as a control mechanism by offering a standard for comparison (A), remains constant regardless of production levels (B), and is uniform across all activity levels in a flexible budget (C), making all provided reasons correct.

Budgeted Fixed Overhead Is the Basis for Controlling Fixed Overhead