Controllable costs, as used in a responsibility accounting system, consist of:
A) only fixed costs.
B) only direct materials and direct labor.
C) those costs that a manager can influence in the time period under review.
D) those costs about which a manager has some knowledge.
E) those costs that are influenced by parties external to the organization.

Question

Quizplus · Accepted Answer

Controllable costs are those costs that a manager has the power to influence or control in the short term. This includes a variety of cost types, not limited to fixed costs, direct materials, or direct labor, and is not restricted to costs known to the manager or influenced by external parties.

Controllable Costs, as Used in a Responsibility Accounting System, Consist