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Which one of the following best defines standard costing in a system of budgeting?
A all activities are examined without reference to history each year
B output level and costs are predetermined, actual results then compared with these
predetermined costs and variances analysed
C actual costs are compared with predetermined costs for the level of activity
D costs are assigned to a manager in order that controllable and non-controllable costs
are accounted forSir, why isn’t option B correct. Also sir I often face issues with theory related MCQ’s, how to tackle them and prepare for them?
Actual results are compared with the flexed budget costs (not the predetermined costs) and then variances are calculated, as I explain in my free lectures.
The only way of preparing is to watch all of our free lectures and then practice every question in your Revision Kit and learn from your mistakes.
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