Managerial Accounting Includes the Controlling Function

question 30

Multiple Choice

Managerial accounting includes the controlling function. Which of the following items would be part of the controlling function of a business's managerial accounting?

• A) Comparing actual performance to previously budgeted amounts
• B) Creating detailed budgets
• C) Devising marketing and production plans
• D) Setting product prices

---

Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and loan payments.

Marginal Productivity

Marginal productivity measures the change in output resulting from altering the level of a single input while holding other inputs constant.

Marginal Costs

The added financial burden of creating one more unit of a product or service.

Average Costs

The total cost of production divided by the quantity produced, often used to evaluate production efficiency.