Select the correct statement regarding general,selling,and administrative (GS&A)costs.
A) Variable general, selling, and administrative costs can have price variances.
B) Variable general, selling, and administrative costs cannot have usage variances.
C) Cost variances are not generally computed for fixed general, selling, and administrative costs.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Variable GS&A costs can have price variances, which occur when the cost per unit changes, but they cannot have usage variances as the quantity of inputs used is determined by the level of activity. Cost variances are not generally computed for fixed GS&A costs as their costs remain constant irrespective of the level of activity.

Select the Correct Statement Regarding General,selling,and Administrative (GS&A)costs