Controllable Costs - Accounting

The video tutorial explains three types of costs: controllable, non-controllable, and partially controllable. Controllable costs are those a manager can change based on decisions, like a family's dining out budget. Non-controllable costs, such as rent, are fixed and hard to alter. Partially controllable costs, like food and gas, can be adjusted but not eliminated. The tutorial uses family budgeting examples to illustrate these concepts.

What is an example of a controllable cost in a family setting?

• Eating out budget

• Insurance

• Rent

• Mortgage

Which of the following is a characteristic of non-controllable costs?

• They require significant decisions to change.

• They can be easily adjusted based on needs.

• They have no impact on budgeting.

• They are always beneficial to reduce.

What is an example of a non-controllable cost?

• Rent

• Dining out

• Groceries

• Gasoline

Which type of cost allows for some adjustment but cannot be completely eliminated?

• Non-controllable costs

• Fixed costs

• Controllable costs

• Partially controllable costs

Which of the following is an example of a partially controllable cost?

• Rent

• Mortgage

• Eating out

• Gasoline