The dollar amount of the controllable margin
A) is usually higher than the contribution margin.
B) is usually lower than the contribution margin.
C) is always equal to the contribution margin.
D) cannot be a negative figure.

Question

Quizplus · Accepted Answer

The controllable margin is the contribution margin less all controllable fixed costs. Since controllable fixed costs decrease the controllable margin, it is usually lower than the contribution margin. Therefore, choice B is the best answer.

The Dollar Amount of the Controllable Margin