Question - A common performance measurement for managers is the level to which he or she manages controllable and uncontrollable costs.
1. Discuss your understanding of controllable and uncontrollable costs.
2. What factors are taken into consideration when distinguishing between controllable and uncontrollable costs?
3. Does the level a manager holds within the hierarchy determine their level of control of the costs? Explain.
4. Discuss the pros and cons of using management of controllable and uncontrollable costs for a manager's performance review.