A Cost Is Considered Controllable at a Given Level of Managerial

question 97

Multiple Choice

A cost is considered controllable at a given level of managerial responsibility if

• A) the manager has the power to incur the cost within a given time period.
• B) the cost has not exceeded the budget amount in the master budget.
• C) it is a variable cost but it is uncontrollable if it is a fixed cost.
• D) it changes in magnitude in a flexible budget.

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Definitions:

Standard Deviation

A statistical measure that quantifies the dispersion or variation of a set of numerical data from its average.

Portfolio

A collection of investments held by an individual or institution.