Asked by Camryn Morrow on Jun 26, 2024
Verified
Costs that the manager has the power to determine or significantly affect are called:
A) Uncontrollable costs.
B) Controllable costs.
C) Joint costs.
D) Direct costs.
E) Indirect costs.
Controllable Costs
Expenses that management can directly or indirectly control or influence in the short term, such as supplies and advertising.
- Acquire the skill to distinguish between direct, indirect, controllable, and uncontrollable costs and comprehend their impact on the analysis of departments.
Verified Answer
DD
Danielle DobsonJun 30, 2024
Final Answer :
B
Explanation :
Controllable costs are the costs that can be influenced or managed by the manager. This includes costs such as labor, materials, and expenses that the manager has control over. Uncontrollable costs, on the other hand, are costs that the manager cannot control, such as rent and taxes. Joint costs refer to costs incurred in producing two or more products simultaneously, while direct and indirect costs refer to how costs are allocated to specific products or activities.
Learning Objectives
- Acquire the skill to distinguish between direct, indirect, controllable, and uncontrollable costs and comprehend their impact on the analysis of departments.
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