Business, Legal & Accounting Glossary
An uncontrollable cost is an expense over which a person has no direct control.
Uncontrollable Costs (also known as non-controllable costs) are items of expenditure appearing on a manager’s management accounting statement that are not able to be controlled or influenced by that management level.
Costs regarded as uncontrollable by one managerial level may, however, be controllable by a higher level of management.
There’s always the potential for disagreement over whether a cost is controllable or not. Correctly identifying non-controllable costs is useful from a performance analysis perspective.
An uncontrollable cost is an expense over which a person has no direct control. The concept most frequently applies to the manager of a department, whose departmental expenses may include several line items which he has an inability to alter.
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This glossary post was last updated: 3rd December, 2019 | 0 Views.