The process of setting standards and comparing actual performance with standards with a view to control the cost is ________.

A. cost reduction

B. cost control

C. cost allocation

D. cost ascertainment

Answer: Option B

Solution(By Examveda Team)

The process of setting standards and comparing actual performance with standards with a view to control the cost is cost control. Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process. A business owner compares actual results with the budgeted expectations and if actual costs are higher than planned, management takes action.