Asked by: Penny Maiztegui
asked in category: General Last Updated: 21st March, 2020

What are controllable fixed costs?

Controllable fixed costs are those which the manager of a profit center can control, for example advertising and marketing costs.

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Beside this, what is an example of a controllable cost?

Examples. An example of controllable cost includes direct labor, direct materials, donations, training costs, bonuses, subscriptions and sues, and overhead costs. On the other hand, an example of uncontrollable costs includes depreciation, insurance, administrative overhead allocated and rent allocated.

Subsequently, question is, what is controllable and uncontrollable cost? The key difference between controllable and uncontrollable cost is that controllable cost is an expense that can be increased or decreased based on a particular business decision whereas uncontrollable cost is a cost that cannot be increased or decreased based on a business decision.

Similarly, it is asked, what are controllable costs?

Controllable Costs. Controllable costs are costs that can be influenced or regulated by the manager or head responsible for it. For example: direct materials, direct labor, and certain factory overhead costs are controlled by the production manager.

What is an organization's largest controllable cost?

Typically, the largest controllable expense in the organization involves a. executive salaries and bonuses.

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