Which of the Following Is a True Statement

question 74

Multiple Choice

Which of the following is a true statement?

• A)All costs are controllable at some level with a company.
• B)Responsibility accounting applies to only profitable divisions and segments.
• C)A cost is controllable if it is incurred in a manager's division or segment.
• D)More costs are controllable as one moves downward in management levels.

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Definitions:

Nondeductible Contributions

Payments to certain accounts like IRAs where the investment is made with after-tax dollars, hence not tax-deductible.

IRA

Individual Retirement Account, a savings account with tax advantages that individuals can use to save and invest long-term.

AGI

Adjusted Gross Income represents a calculation derived from your total earnings, used to ascertain the taxable portion of your income.

Deductible IRA Contribution

An investment in an Individual Retirement Account that can be deducted from gross income for tax purposes, thus reducing taxable income.