The most useful evaluation of a manager's cost performance is based on: Select one: a. Controllable costs. b. Contribution percentages. c. Departmental contributions to overhead. d. Fixed expenses. e. Direct costs.

Question

Gianna Payne

Business

9 July, 07:11

The most useful evaluation of a manager's cost performance is based on: Select one: a. Controllable costs. b. Contribution percentages. c. Departmental contributions to overhead. d. Fixed expenses. e. Direct costs.

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Brenden Mcknight · Answer 1

Controllable costs.

Explanation:

Controllable costs are those that tend to be altered in the short term. The decision to incur these cost usually resides with one person. If the person making the decision is the manager, then the best way to assess the manager's cost performance is by evaluating controllable cost.

When the decision to incur a cost rests with more than one person then the cost is not controllable by the individual, and will not be a good yardstick to measure the manager's cost performance.