In the long run, all costs are controllable. Is this statement true? Why or why not?
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In the long run, all costs are controllable. Is this statement true? Why or why not?
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- Explain why all costs are controllable by someone at some time but in the short run some costs may be classified as noncontrollable.what is the definition of fixed, variable, and mixed costs? Are variable costs or fixed costs easier to control?Managers often assume a strictly linear relationship between cost and the level of activity.Under what conditions would this be a valid or invalid assumption?
- Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.” Do you agree? Why? Please be specific in supporting your position.In a drop or continue decision, only the variable costs identified with a product are relevant in a decision-making. true or false?Is there a difference between relevant costs and incremental costs? Explain
- Sunk costs are easy to spot - they're simply the fixed costs associated with a decision." Do you agree? Explain.Do you agree from the following statements- Explain in details with examples 1.Variable costs are controllable but fixed costs are not. 1.Sunk costs are irrelevant cost while making any decision."ABC systems may result in misallocation of indirect costs."Do you agree? Give reasons for your answer
- Consider the following statements concerning costs. 1. A committed cost cannot vary with the decision. 2. An outlay cost cannot vary with the decision. Are the above statements true or false?Which of the following costs can be ignored when making a decision?a. Opportunity costs. b. Differential costs. c. Sunk costs. d. Relevant costs.Why is it necessary to distinguish between variable and fixed costs when dealing with mixed costs?