In responsibility accounting,a center's performance is measured by those costs which are controllable.Controllable costs are best described as including (CMA adapted)
A)direct materials and direct labor only.
B)only those costs that the manager can influence in the current period.
C)only discretionary costs.
D)those costs about which the manager is knowledgeable and informed.
E)incremental and fixed costs.

Question

Quizplus · Accepted Answer

Controllable costs are the costs that a manager can influence in the current period. These costs can be either variable or fixed, and they may include direct materials, direct labor, and discretionary costs, but not necessarily all of them. The key criterion is that the manager has the authority to make decisions about these costs and their impact on the center's performance. Incremental costs and fixed costs may also be controllable or uncontrollable depending on the circumstances.

In Responsibility Accounting,a Center's Performance Is Measured by Those Costs