Costs That the Manager Has the Power to Determine or at Least

question 22

Multiple Choice

Costs that the manager has the power to determine or at least significantly affect are called:

• A)Uncontrollable costs.
• B)Controllable costs.
• C)Joint costs.
• D)Direct costs.
• E)Indirect costs.

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Definitions:

Cost of Goods SOLD

Expenses directly associated with the creation of goods a company sells, including costs for materials and labor.

Operating Expenses

Recurring expenses related to the central operations of a business, such as rent, utilities, and payroll, excluding costs of goods sold.

Earnings Per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of common stock.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, giving them rights to dividends and voting in shareholder meetings.