Stallard corporation exists to analyze its controllable costs to witness where it can save money in the coming year. All of the following costs except factory real estate taxes should be analyzed.
Costs that the corporation has complete control over are referred to as controllable costs. These costs include labor costs and marketing budgets. Non-controllable costs, on the other hand, are those that a business cannot alter, such rent and insurance. The distinctions between these two cost kinds are crucial for managers to understand.
Costs that can be changed in response to a necessity or business decision are referred to as controllable costs. On the other hand, an uncontrollable expense is one that cannot be changed in response to a specific business need or decision.
Real property, often known as real estate, is any possession that is attached to the land, including buildings and other structures. Real property for a business would include any offices, factories, warehouses, or other structures that the business owns.
Hence, Stallard corporation exists to analyze its controllable costs to witness where it can save money in the coming year. All of the following costs except factory real estate taxes should be analyzed.
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