Question

Controllable costs for responsibility accounting purposes are those costs that are directly influenced by which of the following?
A) production volume
B) a given manager within a given period of time
C) sales volume
D) a change in activity

Answer 1

Answer:

The correct answer is B

Explanation:

Controllable cost is the one which can be altered or changed in the short term and it is considered to be controllable when the decision incur it reside with the person. But if the cost is imposed by the third party on the organization, will not be considered as the controllable cost.

So, it is that cost which is directly influenced by the manager within a stated period of time.