20.3.4. Controllable and Uncontrollable Costs

Try these first

1. 1.

   What are controllable costs?

   Hint

   Consider what expenses can be adjusted in a business.

2. 2.

   Name one example of an uncontrollable cost.

   Hint

   Think of costs that come from regulations or laws.

3. 3.

   What are controllable costs?

   • Costs that can change based on management decisions
   • Costs that cannot be changed at all
   • Both A and B

   Hint

   Remember who has the power to affect these costs.

4. 4.

   True or False: Uncontrollable costs can be adjusted at management's discretion.

   • True
   • False

   Hint

   Think about what 'uncontrollable' means.

5. 5.

   You are a project manager facing higher than expected lease costs. How do you approach managing the budget considering increased uncontrollable costs?

   Hint

   Identify flexible elements in your budget.

6. 6.

   A company has a fixed marketing budget but is faced with a new regulatory fee that is uncontrollable. Suggest a strategy to mitigate its impact.

   Hint

   Think about how to maintain marketing effectiveness with limited resources.