uncontrollable costs
they force the manager to compare actual costs at one level of activity to budgeted costs at a different level of activity.
Responsibility Accounting Report
This is generally done in areas such as manufacturing where processes can be more automated. By investing in machines and facilities, the fixed costs will increase, but variable labor costs will decrease.
immediate costs
immediate costs
Non-controllable costs are expenses that a manager has no authority to influence or change. One example is an employee's rate of pay.
cost center
Factory manager is not directly related to the production of units of product so it is not direct labor cost but it is included in overhead costs.
Manager's Salary
Function-based cost management is the budgeting philosophy that the budget controller (in this case the manager) budgets costs based on the function of a department, person, area, etc. Generally, the manager assigns costs according to the importance of the function to that manager.
The cost of production is one of the many factors that determine whether to make or buy. If it costs more to produce than it would to outsource, it is a good idea to outsource.
it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.
Function-based cost management is the budgeting philosophy that the budget controller (in this case the manager) budgets costs based on the function of a department, person, area, etc. Generally, the manager assigns costs according to the importance of the function to that manager.
Function-based cost management is the budgeting philosophy that the budget controller (in this case the manager) budgets costs based on the function of a department, person, area, etc. Generally, the manager assigns costs according to the importance of the function to that manager.
Probably, but I would VERY STRONGLY recommend that you DO NOT! Probably, but I would VERY STRONGLY recommend that you DO NOT!
General and administrative costs and Direct costs are the criteria that determine work methods for routine types of projects.
Total cost is determined by adding fixed costs and variable costs together. fixed cost + variable cost = total cost