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

Employers retirement plan, Amy earns $35,000 working part time. Consequentl...

Amy earns $35,000 working part time. Consequently, she is not eligible to participate in her employer's retirement plan or health insurance program. Amy's expenses are summarized a

Calculate the payout ratio, The following information is available for Whit...

The following information is available for Whitlock Corporation in millions average common stockholders equity 2014-$2,532 2013-$2,591 dividends declared for common stockholders 20

Market-based transfer price optimal, Under what conditions is a market-base...

Under what conditions is a market-based transfer price optimal?

Mr., behabioural aspect of standard costing on budget

behabioural aspect of standard costing on budget

what is your corporate cost of capital , You are the CFO of a Hospital. Su...

You are the CFO of a Hospital. Suppose that your projected average daily reimbursement is $100, 000 and your average collection day is 40 days. What is your hospital's annual cost

Division operating income, All  transfer-pricing  methods  give  the  sim...

All  transfer-pricing  methods  give  the  similar division  operating  income.  Do  you  agree? Describe.

Determine the minimum (floor) price, Special order pricing - Shorewood Shoe...

Special order pricing - Shorewood Shoes Company makes and sells a variety of leather shoes for children. For its current mix of different models and seizes, the average selling pri

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