1 Full costing using absorption methods includes fixed overheads and thus would not be appropriate for decision-making purposes.

2 Use the leverage of fixed overhead.

3 Overhead can be categorized into fixed overhead and variable overhead. Fixed overhead is the cost that will be not changed as the production quantity changes.

4 But that required fixed overhead wires, and rails and platforms , which were expensive, ugly, and inflexible.

5 In accordance with an agreement between the Office of Naval Research and the Smithsonian, the Institution operates with predetermined fixed overhead rates with carry-forward provisions.

6 Overhead variances may be usefully considered as variable overhead variances and fixed overhead variances.