Fixed overhead costs ________.
A) never have any unused capacity
B) have no spending variance
C) have no efficiency variance
D) have no production-volume variance

Question

Quizplus · Accepted Answer

Fixed overhead costs do not have an efficiency variance because efficiency variances are related to how efficiently a company uses its variable inputs. Fixed overhead costs, by definition, do not vary with the level of production or efficiency in the use of inputs.

Fixed Overhead Costs ________