Controllable Costs Are Those That a Manager

question 53

Multiple Choice

Controllable costs are those that a manager

• A)has no authority over.
• B)cannot avoid.
• C)does not participate in authorizing.
• D)can influence through decision making.

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Definitions:

Inflationary Gap

A situation where the total demand in an economy exceeds the total supply at the current price level, often leading to inflation.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, indicating a balance in an economy's output and expenditures.

Full Employment GDP

The total market value of all final goods and services that could be produced in a year at full employment.

Multiplier

In economics, the factor by which gains in total output are greater than the change in spending that caused it, often used in the context of fiscal policy effects.