Answer
A. Planning and Control: In planning and control, the analysis of fixed manufacturing overhead costs focuses on managing and optimizing these costs to ensure efficient operations and cost control. It involves comparing budgeted fixed overhead costs with actual costs to identify variances and take corrective actions to manage them effectively.
B. Inventory Costing for Financial Reporting: In inventory costing for financial reporting, fixed manufacturing overhead costs are allocated to inventory as part of the product cost. These costs are included in the cost of goods sold (COGS) when the inventory is sold. The focus is on accurately valuing inventory for financial statements rather than cost control or performance evaluation.
Work Step by Step
NO STEP INVOLVED
