Question: Some would argue that fixed costs cannot be controlled by department managers so are not relevant for management decision making, hence variable costing in the

Some would argue that fixed costs cannot be controlled by department managers so are not relevant for management decision making, hence variable costing in the only important one. What would be your response to someone who made such a statement?

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While its true that fixed costs may not be directly controllable by department managers in the short term it would be incorrect to dismiss them as irr... View full answer

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