Normally, Managers Will Not See Many Fixed Overhead Spending Variances

Multiple Choice

Normally, managers will not see many fixed overhead spending variances because

A) many fixed costs are contracted for or known ahead of time.
B) fixed costs vary in proportion to activity, so differences do not normally arise.
C) most fixed costs are allocated (such as depreciation) , so no differences occur.
D) actual fixed costs rarely differ from budgeted fixed costs.