Question

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.

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.