Question

What are the controllable and uncontrollable?.

Answer 1

Costs that can be changed in response to a necessity or business decision are referred to as Controllable costs and Uncontrollable costs are those that cannot be changed in response to a particular business necessity or choice.

What is controllable cost ?

• Costs that the corporation has complete control over are referred to as controllable costs. These costs include labour costs and marketing budgets. Non-controllable costs, on the other hand, are those that a business cannot alter, such rent and insurance. The distinctions between these two cost kinds are crucial for managers to understand.

• Office supplies, advertising costs, employee bonuses, and charitable gifts are typical instances of controllable costs. Short-term costs are those that can be easily altered and are referred to as controllable costs.

• A fixed cost is the opposite of a controlled cost and can only be changed over an extended period of time. Rent and insurance are two instances of fixed costs.

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