Controllable Costs

Controllable costs are those which can be controlled or regulated through observation by an executive and therefore they can be used for assessing the efficiency of the executive.  Most of the costs are controllable.

Example: Inventory costs can be controlled at the shop level etc.

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Project Time Cost Trade-off Project Time Cost Trade-off Project Time Cost Trade-off Project Time Cost Trade-off

Legislative Powers

The cost of a project comprises of two components – direct cost and indirect cost.

Direct costs include the cost of materials, labour and equipments etc. direct cost of a project is the sum total of direct costs of all the activities contained in the project. It is inversely proportional to the project duration means the direct cost of any project reduces with the duration of the project.

Indirect costs are the cost associated with sustaining a project. Indirect costs include the cost of supervision, overheads, facilities, penalty cost and lost incentive payments. Project indirect cost is dependent upon the length of the project duration. A project having longer duration will have higher indirect cost.

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By Hassham

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