The most useful data for evaluation of a manager's cost performance is based on:
A)Controllable costs.
B)Contribution percentages.
C)Departmental contributions to overhead.
D)Uncontrollable expenses.
E)Direct costs.

Question

Quizplus · Accepted Answer

Controllable costs refer to expenses that can be influenced or managed by the manager. Thus, evaluating a manager's cost performance based on controllable costs would provide the most useful data as it would show how effectively the manager has managed the costs they have control over. Contribution percentages, departmental contributions to overhead, and direct costs may also be useful data for evaluation, but they do not necessarily capture the manager's management of costs that are directly within their control. Uncontrollable expenses are outside the manager's control and therefore not relevant for evaluating their cost performance.

The Most Useful Data for Evaluation of a Manager's Cost