Controllable cost
A controllable cost is one a specified manager can meaningfully influence within the relevant decision period. The classification depends on authority, information and time horizon rather than whether the cost is fixed or variable. A departmental supervisor may influence overtime but not a centrally negotiated rent. Responsibility reports can separate controllable costs from other charges while still showing the total resources consumed by the activity.
Worked example
A warehouse manager can approve temporary staff hours but cannot change the head-office insurance allocation. The two charges should not be treated identically in their short-run appraisal.
Common mistake
Direct, variable and controllable are different classifications. A directly attributable fixed contract can be outside the current manager’s control.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |