Question

Match the following:-

1.	Standard cost	a)	What cost should be
2.	Period cost	b)	cost not assigned to producers
3.	Actual cost	c)	incurred cost
4.	Budgeted cost	d)	cost of conversion

• A. 1-a , 2-b , 3-c , 4-d
• B. 1-a , 2-c , 3-d , 4-b
• C. 1-c , 2-a , 3-b , 4-d
• D. 1-d , 2-a , 3-c ,4-b

Answer 1

The correct option is A 1-a , 2-b , 3-c , 4-d

Standard cost - the estimated cost of process, resources, or item used in a manufacturing enterprise

Period cost- Any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets.

Actual cost- incurred cost for example; material cost labor cost and overhead cost

Budgeted cost - it is a document that management makes to estimate the revenues and expenses for an upcoming period based on their goals for the business.