US CMA Part 1 · Chapter 3 · Question 16 of 30
Applying the controllability principle, which item should be excluded when evaluating the performance of a production department supervisor?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) An allocation of corporate headquarters administration costs
Explanation
The controllability principle says managers should be evaluated only on items they can significantly influence. Corporate headquarters costs allocated to the department are outside the supervisor's control, while overtime, scrap and supplies are directly influenced by the supervisor.
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