Controllable costs are those over which the company has full authority. Such expenses include marketing budgets and labor costs. By contrast, non-controllable costs are those that a company cannot change, such as rent and insurance.

What is controllable cost example?

The controllable costs are the costs that can be managed and changed in the short-term horizon on the basis of business requirements and needs. Examples of such cost include advertisement cost, direct material cost, donations, compensation etc.

What is controllable cost accounting?

Controllable costs are those costs that can be altered in the short term. More specifically, a cost is considered to be controllable if the decision to incur it resides with one person. ... Also, if a cost is imposed on an organization by a third party (such as taxes), this cost is not considered to be controllable.