ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the definition of actual cost?
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Cost which have been estimated
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Cost which have been calculated
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Cost which possibly by using forecasted costs
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Costs which have occurred and can be reliably measured
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Explanation:
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: -Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.
Detailed explanation-3: -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.
Detailed explanation-4: -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.
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