Comparing planned costs with actual costs is associated with:
A) Variance analysis
B) Flexible analysis
C) Break-even analysis
D) Costing analysis

Question

Quizplus · Accepted Answer

Comparing planned costs with actual costs is known as variance analysis, which is a tool used in cost accounting to identify any differences between budgeted costs and actual costs incurred during a period. This analysis enables managers to identify the reasons for the variances and take corrective actions accordingly. Therefore, the best choice for this question is A.

Comparing Planned Costs with Actual Costs Is Associated With