USA Why is the Fixed Overhead Volume called the DENOMINATOR?

Joined
Jan 17, 2023
Messages
5
Reaction score
0
Country
United States
This is a Managerial Accounting concept. Why is the term 'denominator' used in Managerial Accounting to denote the number of fixed overhead costs?
I am familiar with the difference between a numerator and a denominator, but the term is confusing me as applied to managerial Accounting.
Any help would be appreciated. Thanks.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,775
Messages
27,839
Members
21,814
Latest member
alea2024

Latest Threads

Top