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Because the time frame is short enough, many costs are

relatively fixed in amount. For the costs that are fixed, there is slight optimism

for a reduction as a consequence of short-run changes in volume. Then again, the

functional areas should be expected to cut costs should sales volume fall below

target when, control is exercised over the costs within their function, budgeted

costs were more than adequate for the originally targeted sales, budgeted costs

vary to some extent with changes in sales, and there are discretionary costs which

can be delayed or omitted with no serious effect on the department...

Then again, the

functional areas should be expected to cut costs should sales volume fall below

target when, control is exercised over the costs within their function, budgeted

costs were more than adequate for the originally targeted sales, budgeted costs

vary to some extent with changes in sales, and there are discretionary costs which

can be delayed or omitted with no serious effect on the department...

General points of the essay

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