ECONOMICS

Detailed explanation-1: -Controllable costs include such items as marketing budgets and labor costs, over which the company has full authority. In contrast, non-controllable costs include things like rent and insurance, which a company cannot change.

Detailed explanation-2: -What is a Non-Controllable Cost? A non-controllable cost is an expense that is not within the sphere of control of a manager. The cost may be controllable at a higher level of the organization, but it is not controllable from the perspective of the person in question. For example, a manager cannot alter his own salary.

Detailed explanation-3: -Answer: The controllable costs are: direct materials, direct labor, indirect materials, and indirect labor (supervision). Depreciation, insurance, allocated repairs and maintenance, and allocated rent and utilities expense are not under the influence of the production manager.

Detailed explanation-4: -Controllable costs purview include those for direct labor, direct supplies, donations, training, bonuses, memberships, dues, and overhead. Overhead is another cost that may be managed. Examples of uncontrollable costs include rent, utilities, a share of administrative overhead, and insurance fees.