Ease of Adjustment Codes Definition:
Costs are coded as Green, Yellow, or
Red - depending on how easily the cost could be adjusted to changes in
activity. "Green" costs adjust automatically to changes in activity without
any action by managers. "Yellow" costs could be adjusted in response to
changes in activity, but such adjustments require management action; the
adjustment is not automatic. "Red" costs could be adjusted to changes in
activity only with a great deal of difficulty and the adjustment would
require management action. |
