11 of 22 10 This Test 50 pts SolutionCorrect Answer D Factor

Solution

Correct Answer (D) Factory real Estate taxes.

Explanation

Costs that are in control of the management can be analyzed and reduced if possible. But costs that are not in control of the management of the company should not be analyzed. Factory Real estate taxes are imposed by government and factory management has no control over the rate of taxes charged by Government. Analyzing Factory real estate tax for reduction off cost will be useless in the hands of Stallard Corporation.