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In: Accounting

Which of the following is a controllable cost for a plant supervisor? a.salaries of production supervisors...

Which of the following is a controllable cost for a plant supervisor?

a.salaries of production supervisors

b.None of these choices are correct.

c.the use of direct materials

d.the cost of insurance related to property, plant, and equipment

Solutions

Expert Solution

A controllable cost is an expense that can be regulated or managed by the head responsible for it.

Example. direct material, labour and certain factory overheads can be considered as a controllable costs.

Salaries cannot come under the controllable cots because as it were not managed by the head of each department,it will be wholly under the control of the HR department.

Therefore the use of direct materials can be considered as a controllable costs.

ekkarill92 answered 2 years ago
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