In Responsibility Accounting,a Center's Performance Is Measured by Those Costs

question 33

Multiple Choice

In responsibility accounting,a center's performance is measured by those costs which are controllable.Controllable costs are best described as including: (CMA adapted)

• A) direct materials and direct labor only.
• B) only those costs that the manager can influence in the current period.
• C) only discretionary costs.
• D) those costs about which the manager is knowledgeable and informeD.
• A controllable cost is one that can be influenceD.

---

Definitions:

Performance

The act of carrying out a task or function, often measured against known standards of accuracy, completeness, and speed.

Schedule Preference

Refers to an individual's or group's favorability towards certain times or periods for performing tasks or activities.

Motivation

The internal drive or external incentive that stimulates energy, direction, and persistence in behavior towards achieving specific goals.

Instrumentality

The perception that a certain level of effort will lead to a specific level of performance.