Effective planning of variable overhead costs means that a company performs those variable overhead costs that primarily ________.
A) increase the planned variable overhead budgets
B) add value for the customer using the products or services
C) increase the linearity between total costs and volume of production
D) identify the product advertising requirements

Question

Quizplus · Accepted Answer

Effective planning of variable overhead costs should focus on those that add value for the customer using the products or services. This means that the costs must contribute to the quality, efficiency, reliability, or other customer expectations of the company's offerings. Other factors such as budget, cost linearity, and marketing needs may also be considered, but the customer value is the main priority.

Effective Planning of Variable Overhead Costs Means That a Company