The most useful evaluation of a manager's cost performance is based on:
A) Controllable costs.
B) Contribution percentages.
C) Departmental contributions to overhead.
D) Fixed expenses.
E) Direct costs.

Question

Quizplus · Accepted Answer

Evaluating a manager's cost performance based on controllable costs is the most useful approach as it focuses on the costs that are under the manager's control or influence. This helps to isolate the impact of the manager's decisions and actions on costs and enables a more accurate assessment of their cost management effectiveness. Contribution percentages, departmental contributions to overhead, fixed expenses, and direct costs may also be useful measures, but they do not necessarily provide a complete picture of the manager's cost performance.

The Most Useful Evaluation of a Manager's Cost Performance Is