c is corrent because the product line manager can control the revenue from sales, variable production costs, variable selling and administrative costs, and the traceable discretionary fixed costs. The committed (infrastructure) fixed costs would not be controllable by the product line manager because these costs arise from having property, plant, equipment, and a functioning organization structure which would be beyond the realm of control of the product line manager. The common fixed costs are those costs that arise from operating a facility, operation, or activity that is shared by two or more managers, thus, these costs would not be controllable by a single product line manager.
A is incorrect because the product line manager can control more than the revenue from sales and variable production costs. The product line manager can also control the variable selling and administrative costs and the traceable discretionary fixed costs.
b is incorrect because the product line manager can control more than the revenue from sales, variable production costs, and variable selling and administrative costs. The product line manager can also control the traceable discretionary fixed costs.
D is incorrect because it includes committed (infrastructure) fixed costs and common fixed costs as controllable. The committed (infrastructure) fixed costs arise from having property, plant, equipment, and a functioning organization structure. The common fixed costs are those costs that arise from operating a facility, operation, or activity that is shared by two or more managers. Neither of these two cost categories would be within the realm of control of the product line manager.
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