Tutorial 1 Flashcards

1
Q

What is a controllable cost?

A

A controllable expense is one that can be increased or decreased based upon a particular business decision made by management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is an uncontrollable cost?

A

An uncontrollable cost cannot be increased or decreased by a business decision made by management.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is meant by the term ‘Incremental cost’?

A

An incremental cost is the cost of producing 1 additional unit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly