A controllable cost
A) should be ignored in evaluating the responsibility centre manager's performance.
B) is a cost that is influenced by a manager's decisions and actions.
C) is a cost that cannot be affected by the management of a responsibility centre within a given time span.
D) is the same as a sunk cost.

Question

Quizplus · Accepted Answer

A controllable cost is a cost that the manager can influence through their decisions and actions. Therefore, it should be considered when evaluating the responsibility centre manager's performance. Choices A, C, and D are incorrect because they are either irrelevant or inaccurate definitions of controllable cost.

A Controllable Cost