Sally Strong is the production manager of Eldervale Winery. Her role includes overseeing the production and bottling processes of Eldervale Winery's three product lines: sparkling wine, red wine and white wine. Which of the following is most likely to be an example of a controllable cost for Sally?
A) The costs associated with bottling wine
B) The costs associated with advertising Eldervale wine on national TV
C) The costs associated with liaising with distributors to export wine to China
D) The costs associated with obtaining finance from banks

Question

Quizplus · Accepted Answer

The costs associated with bottling wine are a controllable cost for Sally, as she oversees the production and bottling processes. Sally can control these costs by optimizing production processes, negotiating better prices with suppliers and reducing wastage. The other options listed are either non-controllable costs (e.g. obtaining finance from banks) or not directly related to Sally's role in production management (e.g. advertising and exporting).

Sally Strong Is the Production Manager of Eldervale Winery