Controllable Cost
Accounting glossary · Understand, connect, apply
A controllable cost is one that a particular manager can meaningfully influence over a specified period. Controllability depends on authority and timing rather than the account name alone.
Example
A supervisor can influence overtime scheduling this month but cannot change a head-office insurance contract negotiated for the whole company.
Remember the difference
Influence is rarely absolute. Separate price changes, operating decisions and imposed allocations before judging performance, and consider the manager’s actual decision rights.
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Published 4 November 2026. Prepared with AI assistance; examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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