Question

Which one of the statements is correct about controllable costs? variable costs are controllable and fixed costs are not. a cost is controllable if it is incurred directly in a manager's division or segment. more costs are controllable as one moves downward in management levels. allocated costs are controllable?

Answer 1

Which one of the statements is correct about controllable costs? A cost is controllable if it is incurred directly in a manager's division or segment. Controllable costs are variable costs that are associated with a business or organization. These costs are made up of raw materials, labor payments and other overhead costs that management can control. Some fixed costs are also found under the category of controllable costs.