A useful step for estimating controllable costs is:
A)Separating product costs from administrative costs.
B)Separating contribution costs from product costs.
C)Separating variable costs from fixed costs.
D)Separating variable costs from product costs.
E)Separating fixed costs from product costs.

Question

Quizplus · Accepted Answer

Separating variable costs from fixed costs is a useful step for estimating controllable costs. This is because it allows managers to identify which costs vary depending on the level of production or sales and which costs remain fixed regardless of the level of production or sales. By knowing the variable costs, managers can determine which costs can be controlled and reduced by making changes in operations.

A Useful Step for Estimating Controllable Costs Is