A Controllable Cost Is a Cost That Is Not Subject

question 129

True/False

A controllable cost is a cost that is not subject to the influence of a given manager of a given responsibility centre for a given time span.

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Definitions:

Economic Profits

The surplus left after total costs (including both explicit and implicit costs) are subtracted from total revenues.

Short-Run Marginal Costs

Costs associated with producing one more unit of a good or service in the short term, where some inputs are fixed.

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Profit-Maximizing Firm

A business entity whose primary goal is to achieve the highest possible profits through their operations and investment strategies.