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What is the difference between discretionary and controllable cost?
Wiki User
∙ 9y ago
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.
Wiki User
∙ 9y 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.
If the controllable overhead variance is favorable the overhead volume variance?
volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
What is the difference between engineered costs and discretionary costs?
Discretionary Cost:Cost such as that of advertisement, research and development that a manager may eliminate without disrupting the firm's operations or affecting its productivity capacity in the short runEngineered Cost:This is the cost which have direct relation with cause or activity like direct material, direct labor etc.
What difference between cost and costing?
difference between cost and costing
What is the difference between committed and discretionary cost?
A committed cost is going to occur whether or not you have any output like rent.A discretionary cost is a variable cost like that of raw material.
What is non Discretionary cost?
A non-discretionary cost is one that is not completely controllable by you. Typically you may be able to exert a little influence on such costs by understanding and manipulating consumption patterns but you are not able to unilaterally completely eliminate the cost from your cost-base.
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.
If the controllable overhead variance is favorable the overhead volume variance?
volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
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 difference between cost and costing?
difference between cost and costing
What is the difference between engineered costs and discretionary costs?
Discretionary Cost:Cost such as that of advertisement, research and development that a manager may eliminate without disrupting the firm's operations or affecting its productivity capacity in the short runEngineered Cost:This is the cost which have direct relation with cause or activity like direct material, direct labor etc.
What is the difference between cost and list price?
whats the difference between cost and list?
What is the difference between differential cost and incremental cost?
There is no difference
What are cost that the manager has the power to determine or atleast strongly influence?
controllable cost
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.
