Controllable vs. Uncontrollable Cost
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 July 2010
What is the difference between Controllable And Uncontrollable Cost?
CA. Anoop Gadia
(Expert)
16 July 2010
Costs which can be influenced by the action of a specified person in an organization are known as controllable costs. Costs which remain unaffected by the action of such person are termed as uncontrollable. In a business organization heads of each responsibility centre are responsible to control costs. Costs which they are able to control are known as controllable and include material, labour and direct expenses. Costs which they fail to control include fixed costs and all allocated costs.
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