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Uncontrollable cost

An uncontrollable cost cannot be meaningfully influenced by the specified manager over the assessment period. It may arise from central decisions, external prices or earlier contractual commitments. Identify whose perspective and time horizon are being considered; a cost uncontrollable locally may be controllable by senior management. Reporting it separately can improve appraisal without implying that the organisation should ignore it or that no response is possible.

Worked example

A branch receives an allocated $15,000 corporate audit cost that its manager cannot change. Show it separately from local controllable expenses when assessing that manager.

Common mistake

Uncontrollable does not mean irrelevant to the organisation’s total profit, and it is not necessarily permanent.

Where it appears in your exams

QualificationExamRelationshipPeriod
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