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:

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Current Ratio

A liquidity measure indicating a company’s ability to meet short-term obligations with its short-term assets.

Decimal Place

A position to the right of a decimal point in a number, representing a fraction of a whole.

Inventory Turnover

A financial ratio that measures how many times a company has sold and replaced its inventory over a certain period of time.