Assume actual output exceeds the level of output in the original budget.Costs in which of the following categories will exceed the original budget?
A)total variable costs
B)committed fixed costs
C)discretionary fixed costs
D)all of the above

Question

Quizplus · Accepted Answer

Total variable costs will exceed the original budget if actual output exceeds the level of output in the original budget because variable costs change in direct proportion to changes in output. Committed and discretionary fixed costs remain constant regardless of output levels.

Assume Actual Output Exceeds the Level of Output in the Original