Explain the cost according to controllability, Managerial Accounting

Assignment Help:

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

 


Related Discussions:- Explain the cost according to controllability

Planning, Planning, Directing, and Controlling A clever sign hanging on...

Planning, Directing, and Controlling A clever sign hanging on the wall of a business establishment: "The Managers are paid to manage the work-- If There Were No Problems we wou

Activity-based costing system, The Pinewood Furniture Company Pty Ltd plans...

The Pinewood Furniture Company Pty Ltd plans to design two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing sys

Compute the operating cycle, Under this method, approximation is made of pa...

Under this method, approximation is made of payments and cash receipts in the ensuring period. The dissimilarity of these payments and receipts indicates deficiency or surplus of c

Cost behaviour, How costs behave as the level of activity/volume changes.  ...

How costs behave as the level of activity/volume changes.  Why an understanding of cost behaviour is important ? Types Variable e.g. petrol, direct materials Fixed e.g.

Job order costing, a cost-allocation base may be any of the following excep...

a cost-allocation base may be any of the following except: a. cost driver b. cost pool c. way to link indirect cost to a cost object d. nonfinancial quantity

Innovations of management accounting and control, Implementing management a...

Implementing management accounting and control innovations are often problematic. Provide a brief commentary around the key factors necessary to give such innovations the best chan

Trade credit, It is a spontaneous source of finance that is commonly extend...

It is a spontaneous source of finance that is commonly extended to business organization depending on the custom of the competition and trade prevailing within the organization and

Determine the value of equipment at the current date, A company is preparin...

A company is preparing a value in use calculation for a factory building and the equipment used to make a particular product. It has prepared cash flows for the next five years fro

The cost per equivalent whole unit, During the year Leyland Company complet...

During the year Leyland Company completed 1,300 units of product. Ending inventory consisted of 400 units that were 50% complete. The total dollar cost associated with production o

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