In several questions in BPP revision kit they do not flex the fixed costs. As a result the 3 variances do not add up to total cost variance. Which way should we calculate the fixed variances? Both total cost and individual (volume, expenditure). Should we flex the fixed costs?
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Fixed overhead variances
For example the question 38 in bpp revision kit. Why they don't flex the fixed costs?
Thanks
Thanks
I don't have the BPP books so I can't refer specifically, but I have already asked the question to the tutor on this topic which may help:
https://opentuition.com/groups/ask-the-tutor-acca-f5-exams/forum/topic/flexing-fixed-overheads-budget-query/
https://opentuition.com/groups/ask-the-tutor-acca-f5-exams/forum/topic/flexing-fixed-overheads-budget-query/
Thanks for all
15y ago#4You are welcome
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