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:

Cyclical Effects

Economic fluctuations that occur in cycles due to periodic increases and decreases in the demand for goods and services.

Moving Averages

A statistical technique used to analyze time series data by creating a series of averages of different subsets of the full dataset, often used in stock market analysis.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified period.