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

Question

Quizplus · Accepted Answer

Controllable costs are those costs that can be directly influenced by a manager, and are therefore the most relevant data for evaluating a manager's cost performance. By focusing on controllable costs, a manager can identify areas for improvement and take action to lower costs and increase profitability. Contribution percentages, while useful, are more focused on revenue than on cost performance. Uncontrollable expenses, direct costs, and departmental contributions to overhead are all important factors to consider, but they are not the most useful data for evaluating a manager's cost performance.

The Most Useful Data for Evaluation of a Manager's Cost