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:

Residual Value

The estimated value of a fixed asset at the end of its useful life.

Average Rate

A mean value calculated to represent the typical rate of something, such as interest, return, or speed, over a given period.

Fixed Asset

Long-term tangible property that a firm owns and uses in its operations to generate income, such as buildings and machinery.

Useful Life

The estimated period over which an asset is expected to be usable by an organization, after which it is considered to be no longer useful for business operations.