Larry Schmidt must approve purchase orders before clerks send purchase orders to vendors. Relative to Schmidt, these purchase orders constitute a type of

Question

Quizplus · Accepted Answer

Controllable costs are those that can be influenced or changed by a specific manager at a certain level of authority. Since Larry Schmidt must approve purchase orders before they are sent to vendors, this indicates that he has control over these costs, making them controllable costs relative to him.

Larry Schmidt Must Approve Purchase Orders Before Clerks Send Purchase