An example of a cost that is controllable in the short run is:
A) property taxes.
B) machine depreciation.
C) supervisors salaries.
D)building lease.

Question

Quizplus · Accepted Answer

Controllable costs are those that can be directly influenced by management decisions in the short run. Of the given options, supervisors salaries are controllable in the short run as the management can choose to reduce the number of supervisors, decrease their salaries or adjust their hours to save costs. On the other hand, property taxes, machine depreciation, and building lease costs are generally fixed in the short run and difficult to control or change quickly. Therefore, the best choice as a controllable cost in the short run is supervisors salaries.

An Example of a Cost That Is Controllable in the Short