Controllable fixed costs:
Multiple Choice
Are those costs that the profit center manager can influence in approximately a year or more.
Have no effect on operating income.
Include variable costs.
Are those costs that the profit center manager can influence in approximately a year or less.
Answer:
Are those cost that the profit centre manager can influence in approximately a year or less.
Explanation:
Controllable fixed cost are those fixed cost that can be controlled by the profit centre with in year and it will give directly impact on Operating income.
For example : Advertising expense , Selling expense . Marketing expense and so on.
Note:
Non controllable fixed cost are those cost that the profit centre can influence in approximately one year or more.For example : Rent , Insurance expense.
Get Answers For Free
Most questions answered within 1 hours.