Cost center reports compare actual versus budget regarding __________ costs.
A)controllable
B)noncontrollable
C)fixed
D)variable

Question

Quizplus · Accepted Answer

Cost center reports focus on tracking controllable costs, which are the expenses that can be influenced or controlled by the manager responsible for the center. By comparing actual versus budgeted controllable costs, managers can identify areas where they need to make adjustments to maximize efficiency and profitability. Noncontrollable costs, on the other hand, are expenses that cannot be directly influenced by the cost center manager, such as rent and insurance. Fixed and variable costs are both types of controllable and noncontrollable expenses, so they are not the best choice for completing the sentence.

Cost Center Reports Compare Actual Versus Budget Regarding __________ Costs