Which of the following statements is true of variable overhead costs? A. All the decisions determining the level of variable overhead costs are made at the start of a budget period. B. Activities which add value are of least relevance while planning variable overhead costs. C. Planning of variable overhead costs includes choosing the appropriate level of capacity. D. The level of variable overhead costs incurred in a period is mainly determined by dayminustominusday operating decisions.

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Cedric Goodwin

30 May, 08:19

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Gillian Lynch · Answer 1

The answer is D. The level of variable overhead costs incurred in a period is mainly determined by day to day operating decisions.