Final answer:
Effective planning of variable overhead costs includes choosing the appropriate level of investment, eliminating value-added costs, and redesigning products to use fewer resources.
Step-by-step explanation:
Effective planning of variable overhead costs includes identifying and choosing the appropriate level of investment required for the production process. This involves determining the optimal allocation of resources to minimize costs and maximize efficiency.
For example, businesses can evaluate different technologies and production methods to find more cost-effective alternatives. They can also analyze production processes to identify value-added costs that can be eliminated or reduced.
Redesigning products to use fewer resources can also help reduce variable overhead costs. By finding innovative ways to streamline the production process, businesses can optimize resource allocation and minimize expenses.