Traceable fixed costs are the responsibility of
A)Top management only.
B)Managers who control them.
C)Investment center managers only.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Traceable fixed costs are costs that can be directly identified with and traced to a particular segment or division of a company. Therefore, the managers who control these segments or divisions are responsible for the traceable fixed costs. Top management may oversee these costs, but it is ultimately the responsibility of the managers of the specific segment. Investment center managers may be responsible for overall profitability but may not necessarily have control over traceable fixed costs.

Traceable Fixed Costs Are the Responsibility of