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Management · Q197

Management Accounting

Graduate and Post Graduate · Management · question 197

Q197

A company must eliminate all those activities that do not add value to all products or services in planning of

A.
variable overhead cost
Answer
B.
fixed overhead cost
C.
fixed batch cost
D.
variable batch cost

Answer: Option A

Solution

Answer: Option A
Solution:
A company must eliminate all those activities that do not add value to all products or services in planning of variable overhead cost. Variable overhead is a term used to describe the fluctuating manufacturing costs associated with operating businesses.