A. How do managers decide on what basis to determine variable overhead costs and fixed overhead costs?

B. Give a good description of what variable costs, fixed costs, and overhead costs are.

C. How do managers decide on what basis to determine variable overhead costs and fixed overhead costs?

D. What are the steps in developing a budgeted variable overhead cost-allocation rate?

E. Can the flexible-budget variance approach for analyzing overhead costs be used in activity-based costing? If yes, why? If no, why not?

F. What Activity Based Costing (ABC) is?

G.Describe what a flexible budget is?