In accounting terminology, what is the term for a cost that is expected to be incurred in the future?

Multiple choice question for Basics of Accounting. Select an option, then review the explanation below.

Explanation

Option D is correct because a budgeted cost, also known as an estimated cost, refers to expenses anticipated to occur in the future. Past cost, incurred cost, and actual cost relate to expenses that have already been recorded or paid.

Practice related questions from the same subject.

1.What term is used to describe the item or material for which costs are determined?
2.In accounting terminology, what is the term for the cost recorded in previous financial records?
3.What term describes the process of assigning direct costs to a particular cost object?
4.In a production environment, what term is used to describe factors like the level or volume of company operations that influence costs?
5.In accounting terms, what is the term for the resources given up to accomplish a particular goal?

In accounting terminology, what is the term for a cost that is expected to be incurred in the future?

Explanation

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