Tutorial 1 Flashcards
1
Q
What is a controllable cost?
A
A controllable expense is one that can be increased or decreased based upon a particular business decision made by management
2
Q
What is an uncontrollable cost?
A
An uncontrollable cost cannot be increased or decreased by a business decision made by management.
3
Q
What is meant by the term ‘Incremental cost’?
A
An incremental cost is the cost of producing 1 additional unit.
