Question

Controllable fixed costs: Multiple Choice Are those costs that the profit center manager can influence in...

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.

Business   Accounting   
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Answer #1

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.

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