An example of a controllable cost is
A)property taxes.
B)advertising.
C)depreciation on headquarters building.
D)property insurance.

Question

Quizplus · Accepted Answer

Controllable costs are those costs that can be managed or influenced by management decisions. Advertising is an example of a controllable cost because management can decide on the amount and type of advertising to be done, as well as when and where it will be done. Property taxes, depreciation on headquarters building, and property insurance are not controllable costs as they are determined by external factors such as local tax rates, the age of the building, and the level of risk associated with the property.

An Example of a Controllable Cost Is