Fixed Overhead Variances
13 September 2012
Competence needs to be developed in both the preparation and interpretation of variances. Philip Dunn explores the structure of Fixed overhead variances
In unit 8 Management of Cost and Enhancement of Value, a detailed knowledge of standard costing is required. One area which some students find difficult is the treatment of under or over recovery of Fixed Cost and its interpretation through the structure of Fixed Overhead Variances.
In a recent paper titled It’s all under control (AT, March 2001) I...