Abnormal cost is . . . . . . . .

April 15, 2024 by rawan239

occur under normal operating conditions. They are usually caused by unexpected events, such as natural disasters or accidents. Abnormal costs are not controllable in the sense that they cannot be avoided or prevented. However, they can be managed by taking steps to reduce their likelihood of occurrence.

Controllable costs are costs that can be influenced by management decisions. They are usually associated with the day-to-day operations of a business. Controllable costs can be reduced by making changes to production methods, purchasing practices, or marketing strategies.

Fixed costs are costs that do not change in total with changes in the level of output. They are usually associated with the costs of fixed assets, such as plant and equipment. Fixed costs can be reduced by making changes to the level of production or by using more efficient production methods.

None of these options is correct.