A classification of costs that is useful for assigning responsibility to and evaluating managers is:
A) Classification by traceability.
B) Classification by behavior.
C) Classification by relevance.
D) Classification by function.
E) Classification by controllability.

Question

Quizplus · Accepted Answer

The classification of costs by their controllability is useful for assigning responsibility to managers as it allows for the evaluation of how well a manager can control or manage the costs that are assigned to them. This can provide insight into a manager's effectiveness and efficiency in managing their department or function. Other classifications, such as classification by traceability or function, may be useful for other purposes, but do not necessarily provide insight into a manager's ability to control costs.

A Classification of Costs That Is Useful for Assigning Responsibility