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:

Medium Of Exchange

Anything widely accepted as a tool for payment in the exchange of goods and services.

Commodity Money

Money that takes the form of a commodity with intrinsic value

Fiat Money

Money without intrinsic value that is used as money by government decree

Money

The set of assets in an economy that people regularly use to buy goods and services from other people.