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 costs that can be managed or influenced by a particular manager in the time period under review. These costs may include direct materials, direct labor, variable overhead expenses, supplies, and maintenance. They are also known as variable costs, as they can vary based on the level of activity.

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