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      Question

      Which of the following costs will be the primary

      emphasis of the planning function of management?
      A Marginal Cost Correct Answer Incorrect Answer
      B Standard Cost Correct Answer Incorrect Answer
      C Budgeted Cost Correct Answer Incorrect Answer
      D Actual Cost Correct Answer Incorrect Answer
      E Prime Cost Correct Answer Incorrect Answer

      Solution

      Budgeted cost is a forecasted expense that the company is expected to incur in an upcoming period or financial year.Β  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.Β  As such, it is part of the planning function of the management.

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