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

question 18

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.

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Definitions:

Lower

To decrease in position, value, or condition.

Individual Tolerances

The allowable variations in dimensions and geometry for individual component parts, specifying the permissible limits of error.

General Note

Information or instructions that are applicable to the entire drawing or document, rather than a specific portion.

Accuracy

The degree to which a measured value or calculation approaches the true value, often considered in terms of error magnitude.