The more the cost base is composed of variable or direct costs,the more ______ managers have over the actual management of this cost base on a day-to-day basis.

Question

Quizplus · Accepted Answer

This is because variable or direct costs are directly related to the level of production or activity, and therefore can be managed more easily on a daily basis by the managers. They have more control over these costs compared to fixed or indirect costs, which are not affected by changes in production or activity level.

The More the Cost Base Is Composed of Variable or Direct