Which of the following statements best completes this sentence? 'A cost is deemed to be controllable by the manager …'
A) who has staff authority over that cost
B) who has line authority over that cost
C) who is next in line to the financial controller of the firm
D) who is in the best position to influence that cost in some way

Question

Quizplus · Accepted Answer

A cost is deemed to be controllable by the manager who is in the best position to influence that cost in some way. This means that the manager has the authority or ability to take actions that can affect the cost, such as adjusting production levels or negotiating with suppliers. Staff and line authority may be factors in determining who is in the best position to influence a cost, but they are not the defining criteria. Being next in line to the financial controller of the firm does not necessarily give a manager control over a specific cost.

Which of the Following Statements Best Completes This Sentence? 'A