Ease of Adjustment Codes Definition

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.


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