Question

Which of the following terms is not to be used interchangeably with the word standard costs?

• A. Planned costs
• B. Predicted costs
• C. Scheduled costs
• D. Estimated costs

Answer 1

The correct option is C Scheduled costs

Scheduled cost is an individual cost that is planned and can be changed at will. Scheduled costs are stored in the scheduled cost table, when organization approves this, it will move to the cost table.

An estimated or predetermined cost of producing goods under normal conditions is called standard cost. This is used to find out the variances once the actual cost is incurred.