Control of Engineered Costs Is Frequently Achieved Through the Use

question 68

Multiple Choice

Control of engineered costs is frequently achieved through the use of

• A)zero-base budgeting.
• B)program budgeting.
• C)standards.
• D)cash budgeting.

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Definitions:

Standard Unit Price

A predetermined or established cost that represents an expected or typical amount to be charged or incurred per unit of product or service.

Actual Unit Price

The real cost of a single unit of a product or service, as incurred or experienced in a transaction.

Standard Quantity

The estimated amount of materials or resources expected to be used during a production process under normal conditions.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.