Traceable fixed costs are the responsibility of
A)top management only.
B)managers who control them.
C)investment center managers only.
D)all centers within a company.

Question

Quizplus · Accepted Answer

Traceable fixed costs refer to fixed costs that can be directly traced to a specific business unit or product. Therefore, the responsibility of managing these costs lies with the managers who have control over the unit or product in question. Top management may provide guidance and oversight, but ultimately, it is the responsibility of the managers who control the traceable fixed costs. Investment center managers may also have responsibility for these costs, but not exclusively, as they may not have direct control over the specific business unit or product in question. Therefore, choice B is the best answer.

Traceable Fixed Costs Are the Responsibility of