divisional performance

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September 29, 2017 at 5:24 pm #409010
adarsh1997
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Hi John!

What is the difference between controllable cost and traceable costs?
-Is head office costs a traceable costs?
September 30, 2017 at 11:00 am #409062
John Moffat
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Controllable costs are costs that the manager of the division can control.

Traceable costs are costs that occur because of the existence of the division (i.e. costs that would not exist if the division was to close).
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