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1. Distinguish between controllable and noncontrollable costs. 2. Describe the three types of responsibility centers. 3. Consider the following scenario: You are currently working as

1. Distinguish between controllable and noncontrollable costs. 2. Describe the three types of responsibility centers. 3. Consider the following scenario: You are currently working as the manager of a local Starbucks. You helped develop the current budget for the store and have been doing your best to follow it. Your semiannual evaluation is scheduled in two weeks. You know that a big part of the conversation will be about how the actual numbers are turning out in relation to the budget. As you prepare for the meeting, you think back to your managerial accounting class and the discussion of responsibility centers. Assuming that your store is a profit center, what costs do you think you should be held accountable for (controllable costs)? What costs might you have that you can't control and shouldn't be considered in evaluating your performance? Be specific. Are there any costs that they didn't mention that you think are important? Do you agree/disagree with how they have classified costs as controllable or noncontrollable? Explain your.

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Ans 1 Controllable vs Noncontrollable Costs Controllable Costs These are costs that a manager or decisionmaker can influence or control through their actions Examples include labor costs raw material ... blur-text-image

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