The key difference between a controllable cost and a noncontrollable cost is:
A) the large amount of the cost.
B) the frequency of cost incurrence.
C) the short term ability to influence the cost by the manager.
D)whether the cost is fixed or variable.

Question

Quizplus · Accepted Answer

Controllable costs are costs that can be influenced or controlled by the manager in the short term, such as labor costs, while noncontrollable costs are costs that cannot be influenced or controlled by the manager in the short term, such as rent or insurance. The amount, frequency, or type of cost does not determine whether it is controllable or noncontrollable, but rather the manager's ability to influence or control it. The fixed or variable nature of the cost is also not relevant to this distinction.

The Key Difference Between a Controllable Cost and a Noncontrollable