In responsibility accounting,a center's performance is measured by those costs which are controllable.Controllable costs are best described as including: (CMA adapted)
A)direct materials and direct labor only.
B)only those costs that the manager can influence in the current period.
C)only discretionary costs.
D)those costs about which the manager is knowledgeable and informeD.

Question

Quizplus · Accepted Answer

Controllable costs in responsibility accounting are the costs that a manager can influence or control in the current period. This includes both variable and fixed costs, as long as the manager has the ability to make decisions regarding these costs. Direct materials, direct labor, and discretionary costs may or may not be controllable, depending on the specific circumstances. The key criterion is whether the manager can influence the cost in question.

In Responsibility Accounting,a Center's Performance Is Measured by Those Costs