Question

Costs whose level a manager can influence are known as:

a. Variable costs
b. Fixed costs
c. Controllable costs
d. Sunk costs

Answer 1

Controllable costs are the costs that a manager can influence, while fixed costs remain the same regardless of managerial decisions.

Step-by-step explanation:

In economics, costs that a manager can influence are known as controllable costs. These are costs that can be adjusted or changed by managerial decisions. On the other hand, fixed costs are costs that do not change with the level of production and remain the same regardless of the manager's decisions.