Controllable margin is defined as
A) sales minus variable costs.
B) sales minus contribution margin.
C) contribution margin less controllable fixed costs.
D) contribution margin less noncontrollable fixed costs.

Question

Quizplus · Accepted Answer

Controllable margin is the amount of contribution margin that remains after deducting all the controllable fixed costs from the contribution margin. Therefore, the correct formula for controllable margin is contribution margin less controllable fixed costs (Option C).

Controllable Margin Is Defined as