Effective planning of variable overhead costs means that a company performs those variable overhead costs that primarily add value
A)for the current shareholders.
B)for the customer using the products or services.
C)for plant employees.
D)for major suppliers of component parts.
E)for management.

Question

Quizplus · Accepted Answer

Variable overhead costs should primarily add value to the customer using the products or services. This ensures that the company is focusing on producing high-quality goods or services that meet the needs and expectations of their customers. Focusing on the needs of the customer is essential for the long-term success of a company.

Effective Planning of Variable Overhead Costs Means That a Company