Which of the following budgets usually shows separate sections for fixed and variable costs? A. Direct materials and manufacturing overhead budget. B. Manufacturing overhead budget and production budget. C. Operating expenses budget and manufacturing overhead budget. D. Production budget and manufacturing overhead budget.

Question

Business

Lydia Fields

9 July, 23:10

Which of the following budgets usually shows separate sections for fixed and variable costs? A. Direct materials and manufacturing overhead budget. B. Manufacturing overhead budget and production budget. C. Operating expenses budget and manufacturing overhead budget. D. Production budget and manufacturing overhead budget.

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Herman · Answer 1

Answer: C - Operating expenses budget and manufacturing overhead budget

Explanation:Operating expenses budget are budget made to reflect all a company's fixed expenses. The fixed costs are cost that do not vary. They are costs that are fixed monthly and they are; Salaries, rent, telephone, internet etc.

Manufacturing expenses budget are budget made to reflect a manufactures costs which vary in relation to the level of output.

They vary due to the no of manpower used as well as materials consumed per production. the variable costs includes; cost of raw materials and cost of packaging.