controllable/noncontrollable fixed costs

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
can someone please explain its really driving me

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    controllable/noncontrollable fixed costs

    for PCR?<BR><BR>should be in relation to responsibility accounting. <BR>something to do with influence manager has over controlling the costs. Purchase manager can control the wastage and therefore extra cost of materials but cannot control inflation<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    controllable/noncontrollable fixed costs

    a non controllable fixed cost is when for example rent goes up<BR>it is not really under your control or due to market conditions prices may rise<BR><BR>a controlable cost is the opposite
  • System
    System Posts: 100,534 🤖 Admin 🤖
    controllable/noncontrollable fixed costs

    thanks alot
  • System
    System Posts: 100,534 🤖 Admin 🤖
    controllable/noncontrollable fixed costs

    Hi EvSharp<BR><BR>I didn't understand you "wastage" is material and it is variable costs, but we are looking here for fixed costs.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    controllable/noncontrollable fixed costs

    In the December PCR exam the case study was a Sports Centre.<BR><BR>If that sports centre was part of a local authority then it may well have re-charged central costs such as maintenance or wages administration. These costs could be beyond the manager's control.<BR><BR>It may have fixed costs within the manager's control. I take a different view from Hussain. The chlorine in a swimming pool is a material cost and can have wastage, but as it not dependent on the number of swimmers this would be a fixed cost. But a controllable fixed cost.

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