All of the following statements are correct about controllable costs except
A) all costs are controllable at some level of responsibility within a company.
B) all costs are controllable by top management.
C) fewer costs are controllable as one moves up to each higher level of managerial responsibility.
D) costs incurred directly by a level of responsibility are controllable at that level.

Question

Quizplus · Accepted Answer

Controllable costs are those that can be influenced by a manager's decisions and actions. The statement that fewer costs are controllable as one moves up to each higher level of managerial responsibility is incorrect. In fact, more costs become controllable as one moves up the hierarchy because higher-level managers have authority over a broader range of operations and decisions.

All of the Following Statements Are Correct About Controllable Costs