The correct answer is: B. can
Uncontrollable costs are costs that cannot be influenced by the actions of a specified member of an undertaking. They are often referred to as “fixed costs” or “committed costs.” Some examples of uncontrollable costs include:
- Rent
- Depreciation
- Insurance
- Taxes
- Interest
Uncontrollable costs can be a significant portion of a company’s total costs. It is important for managers to understand these costs so that they can make informed decisions about how to allocate resources.
Option A is incorrect because uncontrollable costs can be influenced by the actions of a specified member of an undertaking. For example, the cost of rent can be influenced by the decision of a company to lease or own its own building.
Option C is incorrect because uncontrollable costs are not always influenced by the actions of a specified member of an undertaking. For example, the cost of insurance may be influenced by the overall economic climate, even if a company has taken steps to minimize its risk.
Option D is incorrect because uncontrollable costs are not always required. For example, a company may choose to lease a building instead of owning it, which would eliminate the cost of rent.