Question
For a university, identify a cost that you think is controllable in the short term and explain why.Identify a cost that you think is controllable
For a university, identify a cost that you think is controllable in the short term and explain why.Identify a cost that you think is controllable in the intermediate term and explain why.Identify a cost that you think is controllable in the long term and explain why.What does this cost structure imply about the university's flexibility in responding to changing student demands and enrollments?
HERE IS MY RESPONSE BELOW. ANY OTHER SUGGESTIONS?
Controllable costs are those costs that can be changed in the short term and/or if the decision to incur it lies with front line management or leadership. Costs that can be considered controllable would include, payroll cost, direct operating expenses, advertising and marketing, utilities, maintenance and repairs, and administration. A short-term controllable cost at a university would include direct operating expenses such as contracts with trash removal and pest control or administration such as office supplies. Intermediate controllable costs at a university would include the cost to contract non-tenured professors or lectures. Lecturers often have another career and are hired to teach a set of course. Long term controllable cost would be the cost incurred for faculty and tenured professors. These professors usually follow an academic career path, teach within their scholarly specialty and conduct research which means there is long term cost of salaries, insurance, vacation time, etc. Cost which cant be changed or altered by front line management. This cost structure implies that the university can be a bit more flexible in responding to changing student demands and enrollment. I think university flexibility is more with short-term and intermediate controllable costs. It is easier to hire more non-tenured staff and lectures or adjusting direct operating expenses as opposed to fulfilling the need for tenured professors
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