The Most Useful Evaluation of a Manager's Cost Performance Is

question 95

Multiple Choice

The most useful evaluation of a manager's cost performance is based on:

• A) Controllable costs.
• B) Contribution percentages.
• C) Departmental contributions to overhead.
• D) Uncontrollable expenses.
• E) Direct costs.

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Definitions:

Revenue Account

A Revenue Account tracks the income generated from a company’s primary operations, such as sales of goods or provision of services.

Expenses

Costs incurred in the process of earning revenue, including operational, administrative, and sales costs.

Supplies

Items used in the operation of a business that are consumed or not durable over a long period, such as office materials or cleaning supplies.

Liability

An obligation or debt that a company owes to others, which must be settled through the transfer of assets or services.