Regarding Controllable Costs,which of the Following Statements Is Incorrect

question 180

Multiple Choice

Regarding controllable costs,which of the following statements is incorrect?

• A) The production manager cannot make the decision to replace older equipment.
• B) All costs are ultimately controllable at the upper levels of management.
• C) The production manager is not responsible for avoiding waste of direct materials.
• D) The production manager must be able to control all costs of his or her department.

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Definitions:

Job Performance

The level of effectiveness and efficiency with which an employee carries out their assigned duties and responsibilities.

Measurement

The action of quantifying the characteristics of phenomena to assign values or attributes, allowing for comparison and analysis.

Random Error

Variability in data or results that stems from unpredictable and uncontrollable factors, affecting the precision of measurements.

Reliability

The degree to which an assessment tool produces stable and consistent results across different times and contexts.