Question

A process has already taken place and subsequent analysis shows that benefits have been realised, indicating that the actual cost incurred is favourable. This situation is best described as ________

Q: Answer-A process has already taken place and subsequent analysis shows that benefits have been realised, in...

Cost accounting involves the ascertainment, analysis, and evaluation of costs after they have been incurred. When a process is completed and analysis shows that the actual cost is beneficial or favourable, it is a function of cost accounting. Cost control is preventive and operates before and during operations Cost compliance is not a recognised cost accounting function Cost report is only a tooloutput, not the process itself Cost reduction focuses on permanent lowering of costs, not post-event evaluation