The application of cost measures to expected future activity levels to forecast future costs is
A) activity analysis.
B) cost prediction.
C) budgeting.
D) cost measurement.

Question

Quizplus · Accepted Answer

The application of cost measures to expected future activity levels to forecast future costs is known as cost prediction. Activity analysis is the process of identifying and evaluating the various activities that comprise an organization's operations. Budgeting involves using past data to plan for future operations, including estimating revenues and expenses. Cost measurement is the process of determining the cost of a particular product or service. Therefore, the best choice is B.

The Application of Cost Measures to Expected Future Activity Levels