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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
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 the costs the manager wants to decrease controllable costs? Explain.
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