Brandy's organization has leased its office space. This type of budget item would be considered a(an):
A) controllable cost.
B) uncontrollable cost
C) endowment cost
D) liquidity.

Question

Quizplus · Accepted Answer

Leased office space is typically considered an uncontrollable cost, as the organization has already committed to the lease agreement and cannot easily change or adjust the cost. Controllable costs are expenses that the organization can easily adjust, such as supplies or utility bills. Endowment costs refer to funds that are invested to generate income for the organization's long-term stability. Liquidity refers to an organization's ability to meet its financial obligations in a timely manner.

Brandy's Organization Has Leased Its Office Space