Which of the following is a true statement?
A)All costs are controllable at some level with a company.
B)Responsibility accounting applies to only profitable divisions and segments.
C)A cost is controllable if it is incurred in a manager's division or segment.
D)More costs are controllable as one moves downward in management levels.

Question

Quizplus · Accepted Answer

Controllability of costs refers to the degree to which costs can be influenced by the actions of a manager at any level within an organization. While not all costs are directly controllable by lower-level managers, at some level within the company (e.g., senior management), there is the ability to control or influence all costs. This concept is fundamental to responsibility accounting, which holds managers accountable for those costs and revenues that they can control.

Which of the Following Is a True Statement