Which of the following is the first stage in a cost control program?
A) measuring actual labor costs incurred
B) making changes to reduce actual labor and material costs
C) comparing planned labor and material costs to incurred costs
D) measuring actual material and process costs incurred
E) establishing standard or planned cost amounts

Question

Quizplus · Accepted Answer

The first stage in a cost control program is to establish standard or planned cost amounts. This involves setting targets for labor and material costs based on historical data and industry benchmarks. Once these standards are established, actual costs can be measured and compared to the standards to identify areas for improvement and cost reduction.

Which of the Following Is the First Stage in a Cost