A cost that management can significantly influence within a given period is called a:
Correct answer: D. Controllable cost
- A. Discretionary revenue
- B. Sunk cost
- C. Committed cost
- D. Controllable cost
Explanation
A controllable cost is one that a particular manager can influence during the relevant period. A committed cost usually results from earlier decisions and may not be quickly changed.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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