What is controllable income?

Controllable income refers to the portion of a business's income that can be influenced or managed by a specific manager or department within the organization. It typically excludes variable costs that are beyond the control of the manager, such as corporate overhead or fixed expenses. By focusing on controllable income, managers can assess performance based on factors they can influence, enabling more effective decision-making and accountability. This concept is often used in performance evaluation and budgeting processes.