Asked by Asona Fagan on Apr 27, 2024
Verified
Policies regarding when a difference between actual and planned results should be investigated are generally more restrictive for noncontrollable items than for controllable items.
Controllable Items
Items or costs in business that can be directly managed or influenced by decisions made by the company or its managers.
- Understand the principle of management by exception and how it is applied in budgetary control.
- Understand the significance of distinguishing between controllable and non-controllable costs in responsibility accounting.
Verified Answer
BM
brandy martinApr 27, 2024
Final Answer :
False
Explanation :
Policies regarding when a difference between actual and planned results should be investigated are generally more restrictive for controllable items than for noncontrollable items, because managers can directly influence controllable items through their decisions and actions.
Learning Objectives
- Understand the principle of management by exception and how it is applied in budgetary control.
- Understand the significance of distinguishing between controllable and non-controllable costs in responsibility accounting.
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