Asked by Riyan George on Jun 24, 2024
Verified
To help assess how well a manager has controlled costs, actual costs should be compared to what the costs should have been for the actual level of activity.
Controlled Costs
Costs that can be influenced or managed by decisions made by managers or company officials.
Actual Costs
Actual costs refer to the genuine expenses incurred in the production, acquisition, or sale of products or services, including materials, labor, and overhead expenses.
Actual Level
The real, observed value or volume of output, production, or activity in a given period.
- Learn about the role that fixed and variable costs play in budget establishment and the appraisal of financial results.
- Understand the process and importance of comparing actual costs and revenues to budgeted amounts.
Verified Answer
Learning Objectives
- Learn about the role that fixed and variable costs play in budget establishment and the appraisal of financial results.
- Understand the process and importance of comparing actual costs and revenues to budgeted amounts.
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