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Controllability and evaluation Suppose you are the manager of a fitness center that is one of...

Controllability and evaluation Suppose you are the manager of a fitness center that is one of many in a chain. Give one example of a cost that you control and one example of a cost you do not control. Why is it important in this setting to distinguish between costs that are controllable and costs that are not controllable?

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Answer #1

In a fitness center, rent expenses are uncontrollable and trainers salary is controllable.

It is important to segregate controllable and uncontrollable cost because controllable cost can be changed in short term and uncontrollable cost can fluctuate only in long term. Therefore, management should focus on each cost accordingly. Hence, there is a need to distinguish between controllable and uncontrollable cost

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