Kevin Smith is the production manager of Mydas Ltd, a company that manufactures a range of motor vehicles. His role includes overseeing the entire production process of Mydas Ltd's three product lines: family cars, sports cars, and motor cycles. Once completed, all the cars are shipped within Australia and to China and Korea by the company's shipping and transportation department.
Identify two examples of controllable costs and two examples of uncontrollable costs for Kevin. Explain your answer.

Controllable costs include: direct labour, some overhead costs, such as quality inspection and machine set ups. In answering this question, it is important to explain why these costs are controllable; for example, Kevin oversees the entire production process so he is likely to be involved in hiring workers. As such, he has control over wages of both factory workers (direct labour) and supervisors (indirect labour).
Uncontrollable costs include advertising (Kevin is only the production manager so he is not involved in advertising) and shipping costs (the question suggests that Kevin has to use the company's shipping and transportation department, so he does not have control over shipping costs).