ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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have been estimated possibily by using Forecasted Costs
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comparison between costing and estimating
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only staff time and effort
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which have occurred and can be reliably measured
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Detailed explanation-1: -In accounting, Actual Cost refers to the amount of money that was paid to acquire a product or asset. This could be the historical, past, or present-day cost of the product.
Detailed explanation-2: -How do you define estimate vs actual costs? Put simply: Estimated costs are what you predict you’ll spend on a project, while. Actual costs are what you really end up spending.
Detailed explanation-3: -Cost analysis, also known as cost-benefit analysis, is the process of calculating the potential earnings from a situation or project and subtracting the total cost associated with completing it. It predicts the profit gained from a project and compares the project’s cost to its estimated financial benefits.
Detailed explanation-4: -The three cost measurement methods to compute the unit cost of a product or service are (1) actual costing, (2) normal costing, and (3) standard costing.