Which of the following statements best completes this sentence? 'A cost is deemed to be controllable by the manager .....'
A) who has staff authority over that cost.
B) who has line authority over that cost.
C) who is next in line to the financial controller of the firm.
D) who is in the best position to influence that cost in some way.

Question

Quizplus · Accepted Answer

A cost is deemed to be controllable by the manager who is in the best position to influence that cost in some way. Line authority and staff authority may not necessarily give the manager control over a particular cost, whereas being in the best position to influence the cost implies that the manager has the ability to make decisions or take actions that can affect the cost. Being next in line to the financial controller of the firm does not necessarily imply control over a specific cost.

Which of the Following Statements Best Completes This Sentence? 'A