Slack Is Calculated As

question 27

Multiple Choice

Slack is calculated as?

• A) LFT - EST
• B) LFT - LST
• C) LST - LFT
• D) LFT - EFT
• E) EFT - EST

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Definitions:

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change in the short term.

Profit Center

A responsibility center that incurs costs and also generates revenues.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a certain period, often used in evaluating the performance of investment centers.

Controllable Margin

A financial metric used to assess the amount of profit that can be controlled or influenced by managerial decisions.