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.
volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
payroll is not 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.
Controllable profit measures managerial performance Divisional profit measures divisional performance.
Well....That would be the control of costs
Controllable spending is the type of spending that you decide to do. Uncontrollable spending is the type of spending that you have no choice about. Budgets are typically dominated by uncontrollable spending.
No, the volume variance is controllable but not related to spending. The volume variance calculates the dollar impact of producing more or less than the budgeted production volume. No, the volume variance is controllable but not related to spending. The volume variance calculates the dollar impact of producing more or less than the budgeted production volume.
social security, expanding highways, and unemployment compensation.
volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
payroll is not controllable cost.
I have several sentences for you.That horse is not controllable.The scientific variable is controllable in the laboratory.I want a controllable temper!
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.
Controllable profit measures managerial performance Divisional profit measures divisional performance.
A controllable diseases is a disease that can be managed. Many diseases can be managed by managing nutrition and exercising on a regular basis.
Controllable can be made to do what one wants. Uncontrollable does its own thing and ignores everything else.
and
no