Asked by
Bonnie Griner
on Nov 13, 2024
Verified
Controllable margin is subtracted from controllable fixed costs to get net income for a profit center.
Controllable Margin
Contribution margin less controllable fixed costs.
Controllable Fixed Costs
Fixed costs that management has the ability to influence or change in the short term.
Profit Center
A responsibility center that incurs costs and also generates revenues.
- Understand the concept of controllable margin and its use in profit center evaluations.
Verified Answer
KP
Learning Objectives
- Understand the concept of controllable margin and its use in profit center evaluations.