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.

Question

Quizplus · Accepted Answer

Controllable costs are those that a manager can influence or control in the current period, making option B the correct choice.

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