All of the Following Are Associated with Reporting Controllable Costs

question 169

Multiple Choice

All of the following are associated with reporting controllable costs except:

• A)At lower levels,management have fewer controllable costs.
• B)Responsibility and control broaden for higher-level managers.
• C)Lower-level managers are responsible for detailed costs and so receive detailed reports.
• D)Uncontrollable costs are allocated equally.
• E)Higher-level managers receive summarized reports for focusing on broader issues.

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Definitions:

Transfer Price

The price at which goods or services are transferred between departments or affiliated entities within the same organization.

Divisional Managers

Managers who are responsible for overseeing and directing a division within a company, typically with responsibility for profit and loss.

Profit Centers

Segments within a company that are responsible for generating revenue and profit, often evaluated separately to analyze their performance.

Operations Margin

An indicator of profitability, calculated as the ratio of operating income to net sales, reflecting the efficiency of a company's operations.