Controllable vs. Uncontrollable Cost

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16 July 2010 What is the difference between Controllable And Uncontrollable Cost?

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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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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