A) As manager of a house appliance store, indicate 2 costs that are controllable and 2 costs that are non-controllable.
Next, explain why you would consider them controllable or non-controllable costs.
B) As the manager of a restaurant, list 2 costs that may be considered fixed costs and 2 that may be considered variable costs.
Describe why you consider them fixed or variable costs and explain why you as a manager should be concerned that they are accurately categorized.
One is the advertising cost for the home appliance store. This is the advertising cost specifically for that store. This cost is controllable by the manager. The manager may increase or decrease the advertising costs according to his objectives and resources available.
The second cost is number of sales associates in the store. This is controllable costs. The sales associates constitute the variable cost in the store and so are controllable by the manager. The manager may negotiate salaries, increase or decrease the number of associates and recruit them on ...
Accounting Questions are discussed in great detail in this solution.