Controllable expenses are those that can be influenced by the decisions of the profit center management.

Question

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Controllable expenses are those that can be managed or influenced by the decisions and actions of the profit center management. These expenses include direct labor costs, material costs, and other variable expenses that can be controlled through effective management practices. In contrast, non-controllable expenses such as rent, depreciation or interest payments are determined by factors outside of the control of the profit center management.

Controllable Expenses Are Those That Can Be Influenced by the Decisions