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No. Depreciation would be considered an uncontrollable cost because it is fixed
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∙ 11y ago
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Is payroll cost a controllable cost?
payroll is not controllable cost.
Is electricity cost a controllable cost?
Electricity cost not a controllable cost. The manager cannot influence this type of expense. To the extent where a cost cannot be managed it is indeed a non controllable, now for electricity, to the extent where consumption can be raised or lowered it becomes a controllable cost. If the consumption can be optimized through processes or equipments it then is a controllable cost.
Is depreciation an overhead cost?
no
How does depreciation affect the cost of capital?
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
What are cost that the manager has the power to determine or atleast strongly influence?
controllable cost
Is payroll cost a controllable cost?
payroll is not controllable cost.
Is electricity cost a controllable cost?
Electricity cost not a controllable cost. The manager cannot influence this type of expense. To the extent where a cost cannot be managed it is indeed a non controllable, now for electricity, to the extent where consumption can be raised or lowered it becomes a controllable cost. If the consumption can be optimized through processes or equipments it then is a controllable cost.
Is depreciation a product dost?
Depreciation is a period cost and not a product cost as depreciation is still charged even if there is no production or sale of goods.
Is depreciation an overhead cost?
no
Is the depriciation cost is direct cost?
Depreciation is an indirect cost as there is no separate identification in product cost that which cost is depreciation as deprecation is a overhead cost that’s why it is indirect cost.
How does depreciation affect the cost of capital?
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
What is the different between the cost of depreciation of a asset and its related accumulated depreciation?
Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets.
Are depreciation charges implicit cost?
yes, depreciation is an implicit cost. but this implicit cost is added to total costs in calculating accounting profits.
What are cost that the manager has the power to determine or atleast strongly influence?
controllable cost
Depreciation is called as notional cost why and explain?
Depreciation is called a notional cost because it cannot be measured in real terms.
Historical cost based depreciation tends to do what when there is inflation?
HIstorical cost based depreciation tends to increase profits when there is inflation
What is the difference between discretionary and controllable cost?
Discretionary cost is that amount which is at somebody's discretion like manager etc. Controllable cost is that amount which is in the hands of management to be controlled or not like advertisement expenses etc.
