Controllable and Uncontrollable costs posted by
Explain controllable and uncontrollable costs.
Controllable Cost are the costs which can be influenced by the
action of a specified member of the undertaking. They are incurred in a
particular responsibility centres can be influenced by the action of the
executive heading that responsibility centre. For example: Direct labour cost,
direct material cost, direct expenses controllable by the shop level
Uncontrollable Cost are the costs which cannot be influenced
by the action of a specified member of the undertaking. For example: a foreman
incharge of a tool room can only control costs pertaining to the same
department and the matters which come directly under his control, not the costs
apportioned to other department. The expenditure which is controllable by an
individual may be uncontrollable by another individual.