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Hello Sir,
Could you please explain briefly major differences between controllable and traceable costs?( YOUR FEEDBACK WOULD BE REALLY HELPFUL)Controllable costs are those that are controlled by the manager of the division (so, for example, not including costs that are recharged from the head office).
Traceable costs are those costs that occur because of what the division is doing (whether they are controlled by the manager are charged by the head office).
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So for traceable costs one can identify the source of costs ?
No, not the source (it doesn’t matter what the source is), but they are those costs are are happening because of what the division is doing (e.g. they are costs that occur due to production in the division).
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OK thank u so much sir but can traceable costs be controllable or controllable costs are traceable ?
Yes, traceable costs can be controllable. Controllability depends on who is determining the costs.
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Thank u so much sir
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