Fixed costs that the manager of a department cannot change are called:
A) Controllable.
B) Committed.
C) Traceable.
D) Common.

Question

Quizplus · Accepted Answer

Committed costs are fixed costs that the manager of a department cannot change, as they are generally related to long-term investments such as lease payments, salaries of permanent employees, and insurance expenses. Controllable costs are those that managers can directly influence or change, such as supplies or overtime pay. Traceable costs are those that can be assigned to a specific department or product. Common costs are expenses that are shared by multiple departments or products and cannot be easily assigned to a specific department.

Fixed Costs That the Manager of a Department Cannot Change