In accounting, the cost which is predicted to be incurred or future cost is known as ________?

Correct answer: D. budgeted cost

  • A. past cost
  • B. incurred cost
  • C. actual cost
  • D. budgeted cost

Explanation

A budgeted cost is a cost expected or planned to be incurred in the future. Actual or incurred cost refers to expenditure that has already occurred, while past cost is historical cost.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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