Question

Distinguishing between controllable and noncontrollable costs on a performance report may result in: a decrease in goal congruent behavior by managers. an increase in the effectiveness of a cost management system. an increase in feelings of blame by managers. an increase in the effectiveness of a cost management system and an increase in the quality of performance information. an increase in the quality of performance information.

Answer 1

Answer: an increase in the effectiveness of a cost management system and an increase in the quality of performance information.

Explanation:

Controllable costs this are the cost over which a company can control. Examples of this cost include marketing budgets, and labor costs.

Why non-controllable costs are those cost that a company cannot change or control, examples of this cost are rent , and insurance. This are usually noticeable by an increase in the effectiveness of a cost management system, and an increase in the quality of performance information.