controllable cost

An expense that is incurred at the discretion of an organization’s managers. The performance of individuals is often appraised, in part, in relation to efficient use of controllable costs. Most costs in this category are *variable, but some *fixed costs may also be discretionary. See also *avoidable cost and Unavoidable cost.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • controllable cost — Fin a cost which can be influenced by its budget holder …   The ultimate business dictionary

  • Контролируемые затраты (CONTROLLABLE COST)  — Затраты, на поведение которых может воздействовать ответственное лицо. Обычно имеется в виду конкретный руководитель, поскольку любые затраты кем то контролируются …   Словарь терминов по управленческому учету

  • controllable contribution — The sales revenue of a division less those costs that are controllable by the divisional manager (see controllable costs). Controllable contribution is the most appropriate measure of a divisional manager s performance. In practice, however, it… …   Accounting dictionary

  • controllable contribution — The sales revenue of a division less those costs that are controllable by the divisional manager (see controllable costs). Controllable contribution is the most appropriate measure of a divisional manager s performance. In practice, however, it… …   Big dictionary of business and management

  • Cost of poor quality — (COPQ) or poor quality costs (PQC), are defined as costs that would disappear if systems, processes, and products were perfect. COPQ was popularized by IBM quality expert H. James Harrington in his 1987 book Poor Quality Costs.[1] COPQ is a… …   Wikipedia

  • controllable variance — In standard costing or budgetary control, a variance that is regarded as controllable by the manager responsible for that area of an organization. The variance occurs as a result of the difference between the budget cost allowance and the actual… …   Accounting dictionary

  • controllable variance — In standard costing or budgetary control, a variance that is regarded as controllable by the manager responsible for that area of an organization. The variance occurs as a result of the difference between the budget cost allowance and the actual… …   Big dictionary of business and management

  • Cost accounting — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • avoidable cost — An item of expenditure incurred at the discretion of the management of an organization. In contrast to a *sunk cost, an avoidable cost can be incurred or avoided on the basis of a management decision. For example, potential rental fees for… …   Auditor's dictionary

  • relevant cost — A *cost that has a bearing on a decision making process or that is affected by a decision making process. See also *avoidable cost, *controllable cost, and *discretionary cost …   Auditor's dictionary

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