Controllable Expenses Are Those That Can Be Influenced by the Decisions

question 151

True/False

Controllable expenses are those that can be influenced by the decisions of the profit center manager.

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Definitions:

Rate of Return on Total Assets

A financial ratio that measures the efficiency of a company's use of its assets in generating profit, calculated by dividing net income by total assets.

Rate of Return on Common Stockholders' Equity

A measure of the profitability relative to the shareholders' equity, demonstrating how efficiently equity is used to generate profits.

Net Income Before Taxes

A financial measure that calculates a company's earnings after all expenses have been subtracted from revenues, except for income taxes.