Regarding controllable costs,which of the following statements is incorrect?
A) The production manager cannot make the decision to replace older equipment.
B) All costs are ultimately controllable at the upper levels of management.
C) The production manager is not responsible for avoiding waste of direct materials.
D) The production manager cannot control all of the costs in his or her department.

Question

Quizplus · Accepted Answer

Controllable costs are those that can be influenced by the actions of a manager at a certain level of responsibility. The production manager is typically responsible for avoiding waste of direct materials, as this is a direct cost that can be controlled through efficient production practices.

Regarding Controllable Costs,which of the Following Statements Is Incorrect