One of the most important tools in cost planning is__________?
Correct answer: C. Budget
- A. Direct cost
- B. Cost Sheet
- C. Budget
- D. Marginal Costing.
Explanation
A budget is a central cost-planning tool because it estimates expected costs, revenues and resource requirements for a future period. A cost sheet mainly analyses costs after they have been compiled.
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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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