All of the Following Statements Are Correct About Controllable Costs

question 149

Multiple Choice

All of the following statements are correct about controllable costs except

• A) all costs are controllable at some level of responsibility within a company.
• B) all costs are controllable by top management.
• C) fewer costs are controllable as one moves up to each higher level of managerial responsibility.
• D) costs incurred directly by a level of responsibility are controllable at that level.

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Definitions:

Sales Levels

Refers to the volume of products or services sold within a specific time frame.

Competencies

The combination of skills, knowledge, and abilities that are required to perform a specific job or function effectively.

Human Capital Stock

The amount of any specific form of human capital that is available to the firm at any given time.

Knowledge

Information, understanding, and skills that individuals acquire through experience, education, or training.