Regarding controllable costs,which of the following statements is incorrect?
A) The production manager cannot make the decision to replace older equipment.
B) All costs are ultimately controllable at the upper levels of management.
C) The production manager is not responsible for avoiding waste of direct materials.
D) The production manager must be able to control all costs of his or her department.

Question

Quizplus · Accepted Answer

Controllable costs are those that can be influenced by the actions of a manager at a particular level. The production manager is indeed responsible for avoiding waste of direct materials, as this is a cost directly associated with their department and operations, making statement C incorrect.

Regarding Controllable Costs,which of the Following Statements Is Incorrect