In accounting, cost incurred in past or in historical financial statements is classified as

A. actual cost

B. budgeted cost

C. past cost

D. incurred cost

Answer: Option A

Solution(By Examveda Team)

In accounting, cost incurred in past or in historical financial statements is classified as actual cost. Actual cost is the actual expenditure made to acquire an asset, which includes the supplier-invoiced expense, plus the costs to deliver, set up, and test the asset.