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Definition of controllable costs?
Well....That would be the control of costs
Why distinguish direct costs from indirect costs?
It is done so to keep control on costs as direct costs are controllable while indirect costs are not.
Example of controllable cost and uncontrollable cost?
Controllable costs are costs that a manager or department has authority and responsibility over, such as direct material cost. With uncontrollable costs, management has no control over the cost or when they must be paid, such as liability insurance.
What things do variable costs include?
Variable costs vary depending on a company's production. Production, or output, and costs are included in variable costs. Production and costs are directly related.
What is controllable spending?
Controllable spending is simply spending that a given manager has control over. Controllable spending is examined in evaluating the budget performance of the manager who had control, in seeing how well he managed costs for his unit.
What is a variable and a control variable?
A variable is something that can stand as a subsitute for something. And a controlled variable is somthing controllable.
What is a sentence for the word controllable?
I have several sentences for you.That horse is not controllable.The scientific variable is controllable in the laboratory.I want a controllable temper!
What is Controllable margin most useful for?
Controllable margin is most useful for assessing the efficiency of a company's operations management in controlling variable and semi-variable costs. It helps identify the portion of operating income that can be directly influenced by management decisions and actions. This metric is particularly valuable for evaluating the effectiveness of cost control measures and improving profitability.
Definition of controllable costs?
Well....That would be the control of costs
Why distinguish direct costs from indirect costs?
It is done so to keep control on costs as direct costs are controllable while indirect costs are not.
Example of controllable cost and uncontrollable cost?
Controllable costs are costs that a manager or department has authority and responsibility over, such as direct material cost. With uncontrollable costs, management has no control over the cost or when they must be paid, such as liability insurance.
Difference between controllable and uncontrollable cost?
1.11.5 By Controllability- Costs here may be classified into controllable and uncontrollable costs. (a) Controllable costs - These are the costs which can be influenced by the action of a specified member of an undertaking. A business organisation is usually divided into a number of responsibility centres and an executive heads each such centre. Controllable costs incurred in a particular responsibility centre can be influenced by the action of the executive heading that responsibility centre. For example, Direct costs comprising direct labour, direct material, direct expenses and some of the overheads are generally controllable by the shop level management. (b) Uncontrollable costs - Costs which cannot be influenced by the action of a specified member of an undertaking are known as uncontrollable costs. For example, expenditure incurred by, say, the Tool Room is controllable by the foreman incharge of that section but the share of the tool-room expenditure which is apportioned to a machine shop is not to be controlled by the machine shop foreman The distinction between controllable and uncontrollable costs is not very sharp and is sometimes left to individual judgement. In fact no cost is uncontrollable; it is only in relation to a particular individual that we may specify a particular cost to be either controllable or uncontrollable
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
What things do variable costs include?
Variable costs vary depending on a company's production. Production, or output, and costs are included in variable costs. Production and costs are directly related.
What is controllable spending?
Controllable spending is simply spending that a given manager has control over. Controllable spending is examined in evaluating the budget performance of the manager who had control, in seeing how well he managed costs for his unit.
Are selling costs variable costs?
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
What is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
