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SSC Financial and Cost Accounting P-1 QUESTION #1209
Question 1
In responsibility accounting, costs that a manager can directly influence are called:
  • Uncontrollable costs.
  • Fixed costs.
  • Indirect costs.
  • Controllable costs.✔️
Correct Answer Explanation
In responsibility accounting, controllable costs are those costs over which a manager has significant influence or authority within a given time period. A manager is held accountable only for controllable costs in their responsibility center. Uncontrollable costs are those beyond the manager's direct authority (e.g., allocated head office costs).