Which of the following is not a reason variable overhead costs might differ from the flexible budget costs?
A)Executives' salaries may increase or decrease.
B)The prices paid to acquire variable overhead items can increase or decrease.
C)Variable overhead items can be used more or less efficiently than planned.
D)When the company is less efficient with respect to that production activity, variable overhead is used more or less efficiently.

Question

Quizplus · Accepted Answer

Executives' salaries are typically fixed costs and do not vary with production levels, so they would not affect variable overhead costs. B, C, and D are all reasons why variable overhead costs might differ from the flexible budget costs.

Which of the Following Is Not a Reason Variable Overhead