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Chapter 1
1.5 Controllability and performance management
A cost is controllable if a manager is responsible for it being incurred or is able to
authorise the expenditure.
A manager should only be evaluated on the costs over which they have control.
It is worth emphasising that this concept of controllability is an important idea for F5,
and will be revisited many times throughout the syllabus.
Illustrations and further practice
Now try TYU 5 and TYU 6 in Chapter 1.
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