Dana Klammer is the manager of the Cutting Department in the Northwest Division of Steel Products.Which of the following costs is Dana's controllable cost?
A)Salaries of cutting workers
B)Cost of electricity for the Northwest Division
C)Lumber Department hauling costs
D)Vice president's salary

Question

Quizplus · Accepted Answer

Salaries of cutting workers are directly related to and controllable by the Cutting Department manager, Dana Klammer. Therefore, it is considered as a controllable cost. The cost of electricity for the Northwest Division, the lumber department hauling costs, and the Vice President's salary are typically not within the control of Dana Klammer.

Dana Klammer Is the Manager of the Cutting Department in the Northwest