Controllable Costs, as Used in a Responsibility Accounting System, Consist

question 23

Multiple Choice

Controllable costs, as used in a responsibility accounting system, consist of:

• A) only fixed costs.
• B) only direct materials and direct labor.
• C) those costs that a manager can influence in the time period under review.
• D) those costs about which a manager has some knowledge.
• E) those costs that are influenced by parties external to the organization.

---

Definitions:

Total Utility

The complete satisfaction or pleasure a consumer derives from consuming a certain quantity of a good or service.

Marginal Utility

The extra pleasure a customer receives from using an additional unit of a product or service.

Donuts

A type of fried dough confection or dessert food, commonly shaped in a ring or filled, known for its sweet taste and various toppings.

Day

A period of 24 hours as a unit of time, representing the time it takes for the Earth to complete one rotation around its axis.