Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

4th Canadian edition

1118856996, 978-1118856994

Students also viewed these Accounting questions

Question

What is a polytomous variable?

Answered: 1 week ago