Classification of costs for control

Costs should be allocated to the individual who is responsible for incurring them. This is known as responsibility accounting and is based on the recognition of individual areas of responsibility which are known as responsibility centres.

Controllable and non-controllable costs

Costs should be classified according to whether they are controllable or non-controllable by the manager of responsibility centre.

Controllable cost – a cost which is reasonably subject to regulation by the manager of the responsibility centre. If it is not then it is uncontrollable.

Popularity: 7% [?]

Welcome to Kaizenlog.com If you're new here, you may want to subscribe to my RSS feed , Twitter You can contact us by using the contact form or submitting a comment. You can also share this post with your friends by clicking on the 'ShareThis' button above. Thanks for visiting!