Which one 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 establishing standard or planned cost amounts. This provides a benchmark against which actual costs can be compared to identify variances and take corrective actions.

Which One of the Following Is the First Stage in a Cost