Q-21-10RQ - Horngren'S Financial And Managerial Accounting

Question

 In the long run, all costs are controllable. Is this statement true? Why or why not?

Step-by-Step Solution

Answer

Answer

 

True, all costs are controllable in the long run.

 

Step 1: All costs are controllable

Cost that can be controlled by organization is known as controllable cost. It includes both variable and fixed cost.

Step 2: Why all costs are controllable in the long run

All costs are controllable in the long run. The cost is controlled at the appropriate level of management from the production supervisor to upper management.