Which of the following is a method of cost control?

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Question: Which of the following is a method of cost control?

Options:

Correct Answer: Standard costing

Solution:

Standard costing is a method of cost control that compares actual costs to standard costs.

Which of the following is a method of cost control?

Which of the following is a method of cost control?

Step 1: Understand what cost control means. Cost control is a way to manage and reduce costs in a business.
Step 2: Learn about standard costing. Standard costing is a method where businesses set expected costs for products or services.
Step 3: Compare actual costs to standard costs. In standard costing, you look at what you actually spent and compare it to what you expected to spend.
Step 4: Identify differences. If actual costs are higher than standard costs, it means you need to control costs better.
Step 5: Use this information to make decisions. If you find that costs are too high, you can take steps to reduce them.

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