Question
Which of the following costs will be the primary
emphasis of the planning function of management?Solution
Budgeted cost is a forecasted expense that the company is expected to incur in an upcoming period or financial year. It is an estimated expense that management anticipates will be incurred in a future period based on projected revenues and sales. It gives the expenses/costs that has been planned for in advance and for which funds are typically put aside by a business to cover. As such, it is part of the planning function of the management.
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