A profit center manager of a company's eastern sales division is looking at decreasing the following costs: direct labor, utilities, and purchasing, which is allocated by the number of requisitions. To do so, the manager plans to do the following: increase efficiency in production to decrease the number of hours needed, thus decreasing the direct labor and utilities and ordering larger quantities each purchase to decrease the number of purchase orders. Are all of the costs the manager would like to decrease controllable costs? Explain.

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Controllable cost is an expense that can be increased or decreased based on ... View the full answer