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- Cost Management and Pricing Decisionsaccounting-mcqs › cost-accounting-mcqs › cost-management-and-pricing-decisions
- Published
- 8 May 2023
- Last updated
- 28 May 2026
What term describes expenses that are anticipated for the future but have not yet been incurred?
Multiple choice question for Cost Management and Pricing Decisions. Select an option, then review the explanation below.
Explanation
Designed-in costs refer to expenses that are planned for future implementation and have not yet been realized. Locked-in costs are costs that have been committed but not yet spent. Value-added costs are those that increase the value of a product or service. Therefore, the correct term for costs planned but not incurred is designed-in costs.
More Cost Management and Pricing Decisions MCQs
Practice related questions from the same subject.
- 1.In cost-plus pricing, what does the 'plus' represent?
- 2.Which pricing method involves adding a markup to the cost base to determine the final price?
- 3.What is the term for the method of breaking down and examining a competitor's products or operations to understand their technology?
- 4.What term describes a seller charging a higher price for the same product during periods of high demand?
- 5.What is the process called that involves a detailed analysis of the value chain to minimize expenses and enhance quality in order to satisfy customers?