![]() Additionally, all licensing, safety standards, or other legal regulations fall under this category. Regulated CostsĬity, state, and federal taxes are the biggest types of regulated costs, but many businesses also find them in the form of loan repayment and interest. These costs are not altered based on how much is produced. There are also a few specific types of uncontrollable costs: Fixed Costs Larger companies, however, typically have a central team that decides on the marketing budget each year, meaning this cost has now become uncontrollable. A business owner can decide on a case-by-case basis how much money is allocated to any given marketing source. For instance, at most small businesses, marketing costs are controllable. Some controllable costs can be made uncontrollable in certain businesses. ![]() While some of these can be changed in the long run, the costs will not vary during the year. Below are a few common examples of uncontrollable expenses: Instead, uncontrollable costs are set expenses for a long duration of time. These are not changed by employee action or business decisions. Uncontrollable costs, however, are fixed. Since controllable costs can be changed by short-term decisions, an incremental cost is another type. Incremental CostsĪdditional costs that come when a certain decision is made. are all types of variable costs that will increase when production goes up. ![]() When more of something is produced, the total production costs will increase. These change with the total level of production. There are several broad types of controllable costs, too. There are plenty of more examples of controllable costs, and more specific examples of these, but this is a good place to start. Below are some examples of common controllable costs for small businesses: These costs can be either increased or decreased based on decisions on how to operate your business. Controllable expenses are those that can be adjusted based on employee or owner behavior. ![]()
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