___________ costing provides valuable information for the management and control of materials,labour and other activities related to production.
A)Actual
B)Target
C)Performance
D)Standard

Question

Quizplus · Accepted Answer

Standard costing involves developing predetermined costs for direct materials, direct labor, and manufacturing overhead. These predetermined costs serve as a benchmark against which actual costs are compared, providing valuable information for management and control of production activities. Option A, actual costing, involves the assignment of actual costs to products, which may not be as helpful for management purposes. Option B, target costing, involves setting a desired cost for a product and working to achieve that cost, but this is not the same as developing predetermine costs. Option C, performance costing, is not a commonly used accounting term and is not applicable in this context.

___________ Costing Provides Valuable Information for the Management and Control