Fixed costs should be ignored when evaluating how well a manager has controlled costs.

Question

Quizplus · Accepted Answer

Fixed costs are not directly affected by the actions of a manager, as they do not change regardless of the level of activity. Therefore, they should not be ignored when evaluating how well a manager has controlled costs. Instead, managers should focus on controlling variable costs and improving efficiency in the company's operations.

Fixed Costs Should Be Ignored When Evaluating How Well a Manager