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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.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
A word in between controllable and uncontrollable?
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Controllable cost versus uncontrollable cost?
A controlable cost is a cost a manager can control. For example, if I am in charge of HR at a company, the dollars I spend on advertising open positions is a controlable cost. An uncontrollable cost, would be, the price my business pays for electricity.
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
What is the difference between controllable and uncontrollable risk factors?
Controllable risk factors are those that can be managed and lessened or reduced. Uncontrollable risk factors are like Acts of God.
What is the definition of uncontrollable risk factor?
controllable risk factors
What are the controllable and uncontrollable variables in the marketing environment?
Controllable variables in marketing include price and product. Uncontrollable variables include the target market the company targets in ads during the promotion.
What is the difference between controllable and uncontrollable?
Controllable factors are those that can be managed or influenced by individuals or organizations, such as actions, decisions, or behaviors. Uncontrollable factors, on the other hand, are outside of one's control, such as external market conditions, natural disasters, or government regulations.
Is payroll cost a controllable cost?
payroll is not controllable cost.
Are all fixed expense controllable or uncontrollable?
"Controllable by whom?" should be the first consideration.A controllable expense is one that the manager responsible for controlling that particular expense has some influence over. So if you look at any given fixed expense, it may be controllable by manager X, while it is uncontrollable by manager Y, if Y has no control over it.In the short run, fixed costs may be controllable ORuncontrollable.If the fixed expense is discretionary (for example, a fixed budget of $500 a year for his department's annual summer outing), the manager can cancel the outing without affecting production (except to the extent that department morale is affected, and that is not a measurable accounting cost.). The $500 would be a fixed controllable cost to the manager, because he can avoid the expense entirely by cancelling the outing.However, the amount of monthly rent paid on a factory building is usually a fixed cost that the factory manager cannot change, and so it is a fixed uncontrollable cost to the manager because it is non-discretionary for the manager.The major purpose of dividing variable and fixed costs into "controllable" and "uncontrollable" costs is to aid in evaluating a manager's performance, in order to to hold him responsible only for controlling the expenses that he or she could have controlled, i.e., those expenses that he or she had both the responsibility and the authority to control.
What is cost controlling?
By reduction in operating items and using recycle items then we can control cost by using those resources which we already used it example if the guest used half shampoo, and he threw it but at the same time if we collect it in large quantity and we refill it it reduce the cost.
