Controllable and non controllable costs, Cost Accounting

Assignment Help:

Controllable and Non Controllable Costs

Controllable costs can be influenced on the level of authority at that they are being analyzed when non-controllable costs cannot.

A. Controllable cost - Refers to the cost that can be influenced via the actions of a person in whom authority for that control is vested, as like an example control of labour cost will be influenced via the method of remuneration and the degree at management control that is exercised via a specific managers.

B. Non controllable cost - is cost that cannot be influenced via a person in whom authority for that control is vested as like an example: if the trade union demands a rise in wages the increment is non controllable cost. Likewise, the depreciation of a building is a non-controllable cost to a manager like he does not contain authority over depreciation!

In decision making, merely controllable costs are considered since they can be changed via the decision maker. There is little or nothing such the decision maker can do about the non-controllable costs hence they are irrelevant in decision making. But, the facilities given through the nun-controllable costs should be efficiently utilized.


Related Discussions:- Controllable and non controllable costs

Tracking direct materials, Tracking Direct Materials Jack keeps full re...

Tracking Direct Materials Jack keeps full records of the material released to each job. When Donnie gathered up light bulbs, tape, breakers, wire, and wire nuts on the morning

Cost Classification, What are the importance of cost classification

What are the importance of cost classification

Analyzing direct material costs, You are reviewing a cost proposal, which i...

You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the proposal, you note that there are 500 material items, but y

Computing information, This coursework is intended to help you develop your...

This coursework is intended to help you develop your understanding of shell scripting in both a Windows and Unix environment. You should undertake this coursework in groups cons

Direct and indirect costs, Direct and Indirect costs Recall such direc...

Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so

Explanation of total cost line, Total costs include both variable costs and...

Total costs include both variable costs and fixed costs. Variable costs are costs which can beeasily identified or related to a cost per unit or activity level of some kind for exa

Accounting for materials, list and explain all the procedures of material c...

list and explain all the procedures of material control

The sales value basis., The following data relate to three joint products: ...

The following data relate to three joint products:                                                                               A                 B                     C

Manufacturing costs, manufacturing costs will not include a. indirect mater...

manufacturing costs will not include a. indirect material used b. sales salaries expense c. indirect labor costs d. depreciation of factory equipment

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd