uncontrollable costs

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Items of expenditure appearing on a manager’s management accounting statement that are not able to be controlled or influenced by that level of management. Costs regarded as uncontrollable by one level of management may, however, be controllable at a higher level of management. There is always potential for disagreement over what is or is not an uncontrollable cost. Correctly identifying such costs is important for performance measurement. Compare controllable costs. See also controllability concept.

Subjects: Accounting.

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