Using "planned" costs as a basis for making decisions rather than actual costs is known as:
A) Absorption costing
B) Marginal costing
C) Variable costing
D) Standard costing

Question

Quizplus · Accepted Answer

Using "planned" costs as a basis for making decisions rather than actual costs is known as standard costing. Standard costing involves setting predetermined costs for various activities or products, and then comparing actual costs to the predetermined standards in order to identify any variances or deviations. This information can then be used to make strategic business decisions and manage costs effectively.

Using "Planned" Costs as a Basis for Making Decisions Rather