Any cost that cannot be affected by the management of a responsibility centre within a given time span is a(n)
A) controllable cost.
B) quality cost.
C) uncontrollable cost.
D) opportunity cost.

Question

Quizplus · Accepted Answer

Uncontrollable costs are those that are beyond the influence of a responsibility center's management. This means that regardless of the decisions made or actions taken by the center's management, these costs will not change within a given time span. Therefore, they cannot be managed or controlled by the center. Examples of uncontrollable costs include external factors such as economic conditions, government policies, and natural disasters.

Any Cost That Cannot Be Affected by the Management of a Responsibility