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:

Prospectus

An official document that companies must publish when offering new shares to the public, detailing the investment's risks, objectives, and financial statements.

SEC

Abbreviation for the Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.

1933 Act

The Securities Act of 1933, a U.S. legislation that requires detailed disclosure of financial information from issuers of public securities to protect investors.

Permanent Resident

An individual who has been granted the legal right to live indefinitely within a country other than their nationality.