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Explain the cost According to controllability:
Controllable cost: this is a cost which can be inclined by the action of a specified member of an undertaking. The organization is divided into departments or responsibility centres each managed by a head. These costs of a particular department or centre are guided by the person in charge of the department. The costs which can be controlled by a specified member who is generally an important link in the management are the controllable costs. The head of a cost centre or a department has control over variables costs only which include prime cost and other variable overheads. So the controllable costs are the variable costs.
Uncontrollable cost: it is a cost which cannot be inclined by the action of a specified member of an undertaking. Uncontrollable is generally the fixed cost, the control of which does not lie within the providence of a member of a member of an undertaking. The change in the fixed cost is a matter to be decided at the top level of the management depending upon the policy of the undertaking
MNO Ltd produces and sells for $25 an office machine for which there is a heavy demand which the company is prevented from meeting because of a shortage of skilled labour. The dire
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Trinco Ltd (Trinidad & Tobago-T&T) has been negotiating a contract with a potential customer in Jamaica. Before the negotiations started the Jamaican company agreed to pay $10,000
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