Managers must understand the behavior of overhead costs

Reference no: EM131754507

Managing overhead costs is challenging; managers must understand the behavior of overhead costs, plan for them, perform variance analysis, and act upon the results. Discuss. Why is it crucial for managers as a strategic issue in fixed costs to choose the appropriate level of capacity that will benefit the company in the long run? Support your answers by searching recent business news articles for companies that have downsized, taking large losses while reducing capacity.

Reference no: EM131754507

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