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Sagot :
The difference between actual overhead costs incurred and the budgeted (flexible) total overhead at actual units produced is the production variance. Â So, option (d) will be the relevant answer choice.
What are overhead costs ?
The expenses incurred just to keep a business operating are known as overhead costs. Before you sell a single good or service, you will have to pay these expenses (although you will continue to incur overhead at regular intervals throughout the operation of your business).
Payroll, rent and utilities, business permits, accounting fees, and advertising charges are examples of overhead costs. Unlike direct expenditures, which are directly tied to the goods or services you offer, such as raw materials or packaging supplies, these expenses are generally predictable and continuous. Your direct costs will rise in exact proportion to your sales growth.
Many terms can be used to refer to overhead expenditures, including:
- Overhead expenses
- Operating costs
- Indirect costs
- Administrative overhead
To know more about, overhead costs, visit :
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