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:

Social Good

Actions or activities that benefit the largest number of people in the largest possible way, such as clean air, education, and public safety.

Tax-Exempt Status

A designation by tax authorities that allows an organization to be exempt from paying income tax on certain conditions.

Discriminated

Refers to unfair or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.

Public Purposes

Activities or functions carried out with the intention of benefiting the general public.