When is a cost considered to be controllable?
A)only when the manager has the power to incur the cost within a given time period
B)only if the cost is less than the budget amount
C)only when it is a variable cost
D)only when the amount changes based on different activity levels

Question

Quizplus · Accepted Answer

A cost is considered to be controllable if the manager has the power to incur the cost within a given time period. This means that the manager can take actions to control or reduce the cost, such as negotiating prices with suppliers, implementing cost-saving measures, or adjusting production schedules. Controllable costs are often contrasted with uncontrollable costs, which are outside the manager's control, such as rent, insurance, or taxes.

When Is a Cost Considered to Be Controllable