Costs That the Manager Does Not Have the Power to Determine

question 106

Multiple Choice

Costs that the manager does not have the power to determine or strongly influence are:

• A) Variable costs
• B) Uncontrollable costs
• C) Indirect costs
• D) Direct costs
• E) Joint costs

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Definitions:

Net Sales

The amount of sales generated by a company after deducting returns, allowances, and discounts.

Allowance Method

A method of accounting that estimates and sets aside an amount for potentially uncollectible receivables.

Bad Debts

Receivables from accounts deemed not collectable, which constitute financial losses for the business.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable balance within a specific period.