A cost is considered controllable at a given level of managerial responsibility if
A) the manager has the power to incur the cost within a given time period.
B) the cost has not exceeded the budget amount in the master budget.
C) it is a variable cost but it is uncontrollable if it is a fixed cost.
D) it changes in magnitude in a flexible budget.

Question

Quizplus · Accepted Answer

A cost is considered controllable at a given level of managerial responsibility if the manager has the power to incur the cost within a given time period. This means that the manager has the authority and decision-making power to take actions that influence the cost. Budget amounts, cost variability, and flexible budgets may also play a role in determining whether a cost is controllable, but the defining factor is the manager's level of control over incurring the cost.

A Cost Is Considered Controllable at a Given Level of Managerial