Final answer:
Fixed manufacturing overhead does not require flexing when analyzing production cost variances because it remains constant regardless of production levels.
Step-by-step explanation:
When analyzing end of period production cost variances, the cost component that does not need flexing is fixed manufacturing overhead. Unlike variable costs, fixed costs do not change with the level of production. Since fixed manufacturing overhead is consistent irrespective of the number of goods produced, it remains constant and does not require adjustment, or flexing, for variance analysis. Examples of fixed costs include rent, equipment, and salaried personnel, which are expenditures that stay the same regardless of production levels in the short run.When analyzing end of period production cost variances, the product cost component that will not need 'flexing' is the Fixed manufacturing overhead.
The term 'flexing' refers to adjusting the budgeted or predetermined standard cost based on the actual activity level. However, fixed manufacturing overhead costs do not change based on the level of production. These costs include expenses like rent on a factory or a retail space, machinery or equipment costs, and research and development costs. Since fixed costs remain constant regardless of production level, their variances do not need to be 'flexed'.