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Why does Optimist assume that all overheads are variable?

April 26, 2017assume optimist overheads

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Why does Optimist assume that all overheads are variable?

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From a budgeting perspective most overheads are neither totally variable nor totally fixed. Most overheads are semi variable. Optimist assumes the overheads are variable and allows you to easily change the overheads driver to reflect what you expect the overheads to be.