Which of the following is a true statement of energy costs?
A) Energy costs are not controllable
B) Strategies to reduce energy costs will not impact variable cost budgets.
C) Energy costs are a fixed cost of doing business for a manufacturer.
D) Energy costs are a growing component of variable overhead costs.

Question

Quizplus · Accepted Answer

Energy costs are typically included as part of variable overhead costs in manufacturing. As production increases, so do energy costs. Therefore, strategies to reduce energy costs can have a direct impact on variable cost budgets.

Which of the Following Is a True Statement of Energy