Controllable Costs Are Those That a Manager

question 53

Multiple Choice

Controllable costs are those that a manager

• A)has no authority over.
• B)cannot avoid.
• C)does not participate in authorizing.
• D)can influence through decision making.

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Definitions:

Advertising Budget

The amount of money allocated to advertising and promotional activities to generate sales and awareness of products or services.

Monthly Sales

The total amount of sales revenue generated within a calendar month.

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross revenue, but before taxes and interest are deducted.

Variable Expenses Per Unit

Costs that change directly in proportion to changes in production or sales volume, calculated on a per unit basis.