Two basic categories of costs need to be considered in control systems: (1) the costs associated with the information needed to perform the control process, and (2) the costs associated with undesirable deviations from standards.

Question

Quizplus · Accepted Answer

These two categories of costs are fundamental in control systems, where the first pertains to the expenses incurred in gathering, processing, and analyzing information necessary for effective control, and the second relates to the costs that arise when actual performance deviates from the set standards, leading to potential losses or inefficiencies.

Two Basic Categories of Costs Need to Be Considered in Control