Uncontrollable costs
A) are influenced by a manager's decisions and actions.
B) provide evidence about a manager's performance.
C) are also referred to as opportunity costs.
D) should be ignored in evaluating the responsibility centre manager's performance.

Question

Quizplus · Accepted Answer

Uncontrollable costs are costs that cannot be influenced by a manager's decisions or actions, such as market factors or government regulations. Therefore, they should be excluded in evaluating a manager's performance, and focusing on factors that the manager can control.

Uncontrollable Costs