# Cost Classification for Control
For the purpose of control, costs are classified as Controllable vs Non-Controllable (C1).
## C1: Controllable vs Non-Controllable Cost
| Type | Meaning |
|---|---|
| Controllable Cost | Subject to direct control at some level of managerial supervision |
| Non-Controllable Cost | Not subject to control at any level of managerial supervision |
> Key insight: Controllability is relative to a level of management. A cost uncontrollable at one level (e.g., factory rent for a shop-floor supervisor) may be controllable at a higher level (e.g., the managing director who signs the lease). Whether a cost is controllable depends on who is being held responsible.