Costs That Can Be Influenced by Management at a Specific

question 134

Multiple Choice

Costs that can be influenced by management at a specific level of management are called

• A)direct costs
• B)variable costs
• C)noncontrollable costs
• D)controllable costs

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Definitions:

Balance

Balance refers to the amount of money in a financial account, or the equality between the sum of debits and credits in an account.

Account

A record or statement of financial expenditure and receipts relating to a particular period or purpose or the contractual arrangement under which an entity manages the funds of another.

Collection Float

The delay between when a check is deposited into a bank account and when the funds are available to the depositor, affecting cash flow.

Cheques

Cheques are financial instruments that order a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.