COST ACCOUNTING
RESPONSIBILITY ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Only discretionary costs
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Direct material and direct labor only
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Those costs about which the manager is knowledgeable and informed
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Only those costs that the manager can influence in the current period
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Detailed explanation-1: -Answer and Explanation: Controllable costs, as used in a responsibility accounting system, consist of those costs that a manager can influence in the time period under review.
Detailed explanation-2: -Option (C) The proper delegation of responsibility and authority is the correct answer.
Detailed explanation-3: -Controllable costs. In a responsibility accounting system: A. Controllable costs are assigned to managers who are responsible for them.
Detailed explanation-4: -A responsibility accounting performance reportResponsibility report that compares actual costs and expenses for a department with budgeted amounts. accumulates and reports costs and expenses that a manager is responsible for and their budgeted amounts.