Asked by
Jyothi Tatikonda
on Oct 10, 2024
Verified
Fixed costs should not be ignored when evaluating how well a manager has controlled costs.
Fixed Costs
Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance.
Controlled Costs
Expenses that can be managed or influenced by decisions of business managers, allowing organizations to adjust for efficiency and cost savings.
- Gain insight into how fixed and variable costs impact budgeting processes and financial performance assessments.
Verified Answer
MI
Learning Objectives
- Gain insight into how fixed and variable costs impact budgeting processes and financial performance assessments.
Related questions
A Spending Variance Is the Difference Between the Amount of ...
Chimilio Clinic Uses Client-Visits as Its Measure of Activity ...
Prowse Corporation Is an Oil Well Service Company That Measures ...
Based on a Predicted Level of Production and Sales of ...
A Company's Flexible Budget for 12,000 Units of Production Showed ...