The fixed overhead budget variance is NOT controllable by managers because fixed costs are NOT controllable.

Question

Quizplus · Accepted Answer

The fixed overhead budget variance can be controllable or uncontrollable. While fixed costs are generally consistent and not influenced by volume in the short term, managers can still impact these costs through efficiency improvements, negotiations, or strategic decisions, affecting the variance from the budgeted amount.

The Fixed Overhead Budget Variance Is NOT Controllable by Managers