Controllable margin is determined by subtracting short-term controllable fixed costs from the:

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Controllable margin is calculated by subtracting short-term controllable fixed costs from the contribution margin. Contribution margin is the revenue left after deducting all variable costs, which means it covers all fixed costs (both long-term and short-term). Hence, subtracting only short-term controllable fixed costs from the contribution margin gives the controllable margin.

Controllable Margin Is Determined by Subtracting Short-Term Controllable Fixed Costs