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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
Controllable Cost
Expenses that a manager or business has the power to influence or change directly.
Bottling Wine
Bottling wine involves the process of filling wine bottles with wine after fermentation and aging, preparing them for distribution and sale.
National TV
Broadcast or cable television networks that provide programming across a country, reaching a wide and diverse audience.
- Master the understanding of what differentiates controllable from uncontrollable costs.
- Understand direct, indirect, fixed, and variable costs and how they relate to manufacturing.
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Learning Objectives
- Master the understanding of what differentiates controllable from uncontrollable costs.
- Understand direct, indirect, fixed, and variable costs and how they relate to manufacturing.
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