![]() ![]() They also use social media and content marketing strategies to engage with customers and promote their products at a lower cost. To control these costs, management reallocates the advertising budget to focus more on digital marketing, which is more cost-effective and has a wider reach. Marketing and advertising expenses: The company advertises its products through local newspapers, radio, and online channels.They also explore alternative materials that may provide similar quality at a lower cost. Management negotiates better deals with suppliers to obtain discounts or more favorable payment terms. Direct materials: The company uses various types of wood, upholstery, and other materials in its furniture production.They also implement performance-based incentives to motivate employees and reduce overtime expenses. Management decides to control labor costs by optimizing the production process, eliminating inefficiencies, and ensuring that employees work at full capacity. Direct labor costs: The company has a team of skilled carpenters and other workers directly involved in producing furniture.They identify several controllable costs and implement measures to manage and reduce these expenses. The company’s management team is focused on controlling costs to improve profitability and operational efficiency. Let’s consider a hypothetical example of a small manufacturing company that produces custom-made furniture. Managers should focus on controlling and optimizing controllable costs to improve the organization’s overall financial performance and operational efficiency. Some costs, such as rent, insurance, and depreciation, are considered non-controllable or fixed costs because they cannot be directly influenced or changed by the actions of individuals, teams, or departments within the organization. It’s important to note that not all costs within an organization are controllable. Training and development costs: The cost of employee training and development programs can be controlled by selecting cost-effective training methods, adjusting the frequency of training sessions, or focusing on high-priority skill development areas.Travel and entertainment expenses: Costs related to business travel and entertainment can be controlled by implementing policies to regulate such expenses, choosing more economical travel options, or reducing the frequency of business trips.Marketing and advertising expenses: The cost of promoting products or services can be controlled by adjusting the advertising budget, selecting cost-effective marketing channels, or targeting specific customer segments.Direct materials: The cost of raw materials and supplies used in production can be controlled through efficient purchasing practices, negotiation with suppliers, or substituting materials.Direct labor costs: Wages paid to employees directly involved in the production process or providing services can be controlled by adjusting the number of employees, work hours, or wage rates. ![]() □ Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each. We are always keen to point people to source documents. Search EDGAR for ‘Definitions of controllable expenses’ yourself to verify these results. We regularly update this page as new filings and definitions come in. Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. Controllable Expenses means all expenses other than taxes.Controllable Expenses means all of the project’s associated expenses, apart from uncontrollable expenses.Controllable Expenses means all expenses, other than uncontrollable expenses necessary for the property.Controllable Expenses means all direct expenses excluding: tax expenses and assessments related to the property, insurance costs applied by the for the property, utility expenses, increase in compensation of the employees, agents or contractors if they are part of a union or the increases are due to minimum wage requirements, and costs of significant amendments, additions, improvements, repairs, and replacements to the property.How is Controllable Expenses defined in a legal contract?
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