All of the following statements are correct about controllable costs except
a) all costs are controllable at some level of responsibility within a company.
b) fewer costs are controllable as one moves up to each higher level of managerial responsibility.
c) all costs are controllable by top management.
d) costs incurred directly by a level of responsibility are controllable at that level.
b) fewer costs are controllable as one moves up to each higher level of managerial responsibility.
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Verdant Avionics makes aircraft instrumentation
Their basic navigation radio requires $140 in variable costs and requires $3,000 per month in fixed costs. If it processes the radio further to enhance its functionality, it will require an additional $30 per unit of variable costs and $300 per month in fixed costs. The marketing manager believes the sales price of the radio can be increased from $250 to $280. In making this decision, the amount of additional fixed costs per month is a relevant cost. Indicate whether the statement is true or false
Management writers often use terms like silos, stovepipes, or chimneys to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence
Indicate whether the statement is true or false