A company using responsibility accounting system decides to exclude all uncontrollable costs from a manager's performance report. Jenson is the machine supervisor. Which of the following costs will impact Jenson's performance report?
A) rent and taxes paid on by the company
B) cost of materials used in manufacture
C) direct labor cost
D) cost of power consumed by the plant

Question

Quizplus · Accepted Answer

Direct labor cost is a controllable cost that Jenson can have an impact on by managing the productivity of his team. The other options are uncontrollable costs that Jenson cannot influence or have any direct control over.

A Company Using Responsibility Accounting System Decides to Exclude All